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Snapfish Gives HP Shot At More Photo Options; Customers Get Choices; Printer king bought the online photo site to help develop bigger business.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| April 01, 2005 | COPYRIGHT 2005 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: KEN SPENCER BROWN

It takes four minutes to see why Hewlett-Packard bought the photo-sharing site Snapfish last week.

That's how long the drive is from HP's Silicon Valley headquarters to the nearest Walgreens store. For 29 cents each, digital camera owners can plug memory cards into a touch-screen kiosk and, within seconds, get photo-quality prints.

Every picture Walgreens processes means one less printed at home. For HP, that means fewer ink cartridges to replace or printers to upgrade.

"People are interested in buying photos the way they used to," said Gartner analyst Peter Grant. "They want to walk into the store, hand over their film, shop for an hour and pick up the photos later."

They're also moving to online photo sharing and printing services like Snapfish. That's turned those services into a valuable prize.

A day before HP's news, Yahoo confirmed rumors it would buy Flickr, another online photo service.

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