Whether it was a sunny vacation at the beach, a baby’s very first steps, or cozy family moments during snowy holidays—Kodak was always part of the picture. The brand is still around today, but chances are you haven’t really noticed it lately. Most of us now use our phones to take photos, since smartphone cameras have become way better than the old-school disposable ones Kodak used to offer.
Here’s the story of how Kodak, once a $31 billion photography powerhouse, ended up filing for bankruptcy.
This camera wasn’t cheap—it cost $25, which was a big deal back then. But it came preloaded with film that could take 100 photos.
After using the film, you could mail the entire camera to Kodak’s headquarters in Rochester for processing, which cost another $10. For more experienced photographers who preferred developing their own photos, Kodak offered extra rolls of film for just $2.
You see, a big part of Kodak’s income came from selling film, not cameras. Embracing digital photography meant stepping away from that reliable source of revenue. So, Kodak stuck to its familiar strategy. In fact, by 1996, the company reached its peak value—$31 billion. At the time, it seemed like sticking with film had been the right call.
But as the late ’90s rolled in, cracks started to show. Fujifilm and other competitors gained ground, and Kodak finally gave in to digital. But it was too late. They had delayed the transition because their film sales were still going strong, and that hesitation cost them. Their efforts to pivot by restructuring the chemical side of the business didn’t help much either. By 2001, under CEO Daniel Carp, Kodak made a hard push into digital cameras and printers, trying to catch up.
With things going downhill, a new CEO stepped in and started shutting down plants and outsourcing manufacturing to save costs. But by 2009, Kodak made the heartbreaking decision to end its 74-year run of producing Kodachrome color film.
Even securing a $300 million loan couldn’t pull them out of trouble. They had to sell off their profitable health imaging division just to stay afloat. To make things worse, Kodak got tangled up in legal battles with Apple over copyright disputes. Finally, on January 19, 2012, Kodak filed for Chapter 11 bankruptcy protection.
There were some stumbles along the way—like a couple of failed cryptocurrency ventures, but Kodak is still standing.
Interestingly, back in 1979, an employee named Larry Matteson wrote a report predicting that the world would make a full switch to digital photography by 2010. While he wasn’t completely accurate with the timing, he wasn’t far off. If Kodak had paid more attention to Matteson and Sasson, things might have turned out differently. But as they say, hindsight is a powerful thing.