The Times of London is reporting the possibility that Eastman Kodak of Rochester, New York, could sell off its film business. Analysts report that film may have less than a decade of growth left, with much of that in Asia and less developed countries where digital has been slow to gain a foothold. The Hollywood film industry is one of the last major domestic consumers for film, and even Hollywood will be substantially digital within a decade.
Kodak CEO Antonio Perez declined to comment on a possible sale, but "a source close to the company said that the idea had been discussed by Kodak board members and senior executives and was well within the realms of possibility," said The Times. Film sales are projected to be $3.4 billion this year, decling to $2.7 billion in 2008.
Analysts believe Kodak's film business would command a price of only 50% of sales, estimated as $1.5 billion. The sale would allow resources and revenue to be redirected to Kodak's print and digital arms, which are growing but lag behind industry leaders.
Film has been Kodak's core business for well over 100 years.
Posted by: MIKE JOHNSTON, with thanks to Kevin