SM: Zazzle and CafePress are not going after personal memories or families. JH: Not in the same sense. It is personal publishing. They use different backend technology, being heat transfer method versus digital print technology. From a ecommerce standpoint, there area lot of similarities. We advertise online, run a ecommerce company, own our manufacturing and
SM: What do you think of SmugMug? It is very popular. JH: It is popular for us because we are in the valley. When you look at the grand scheme of things, they are still a relatively small company with about $10M in revenue. I think what they have done well is they said in
SM: Why didn’t Flickr elect to work with you? JH: At the time we were competing with Yahoo Photos, and Flickr chose a small company who is producing product as their outsource manufacturer. That small company has signed up a number of sites who in the early days thought they were competing with Shutterfly. They
SM: Travel is a “context” that has great relevance for your business. JH: We think about that opportunity a lot. What is nice about our business is our customers engage with us frequently throughout the year. We drive our business in a couple of ways. First, you have your typical holidays.
SM: What are your margins on the photo book business? JH: We do not disclose margins specifically. What we report to Wall Street are prints which are all prints from wallet size to the 20×30 pictures, and personalized products and services, and that’s how cards, calendars and photo books are counted. What we have said
SM: You are focusing on personal memories and personal experiences exclusively. JH: Exactly, things which are near and dear. We have always been a password protected environment. I am not going to put the pictures of my three young boys across Flickr for everyone to see.
SM: Your vision was to move beyond the traditional print model, and rather be the center of a lifestyle. JH: I also saw us as building a personal publishing platform. Yes, we have consumers doing all the beautiful cards, books and calendars, but we also have lots of small businesses, charities, schools, non-profits, jewelry manufacturers,
SM: Before we move on with your Shutterfly story, can you shift gears for a second and tell us the history of Shutterfly? JH: Shutterfly was founded in 1999 by two employees of Silicon Graphics – Eva Manolis and Dan Baum. Eva was a product person and Dan was a technology person. They teamed up