NPD’s Imaging Confluence study found more than one third of consumers said it would be “very” or “extremely important” for their next digital camera to have the capability both to upload wirelessly to the Internet to share photos, as well as to wirelessly transmit to other devices. The loudest voices for wireless capability in a digital camera were those of Moms, as well as those who are above average photo printers. Nearly half of these consumers stated that wireless capability would be “very” or “extremely” important in their next camera.

And it’s clear, even in a world where smartphones have become a quick, convenient way to snap photos on the go, there are still plenty of consumers who demand features which are just not accessible on their smartphones. According to NPD’s Weekly Tracking Service during the five weeks ending December 24th 2011, point-and-shoot cameras with less than 10x optical zoom declined by 37 percent in units, but those 10x or greater increased by 46 percent, marking a solid dichotomy in the market. At the same time, detachable lens cameras rose by 17 percent.

The market for compact cameras isn’t dying, it’s just evolving. Imaging hardware manufacturers have heard the consumers’ call and are finally answering it.

But wait… while a small niche compared to other imaging categories, the pocket camcorder market grew by 90 percent in revenue from 2008 to 2009 then by 23 percent from 2009 to 2010. It seems a bit premature to be giving up on this category. Despite the fact that HD video is in an increasing proportion of cameras and smartphones, there are places that neither does as well as a dedicated HD pocket (or helmet, leg, or board) video recorder.

If any device is threatened with the proliferation of video usage in other devices it’s the traditional camcorder. In the Imaging Confluence study, only 9 percent of traditional camcorder owners stated they were using them more than in the prior year, and 40 percent said they were using them less.

In order to remain relevant, the pocket camcorder needs to offer what no video capture device does. The Imaging Confluence study reveals that the pocket camcorder, more than any other video capture capable device, is more likely to be used while “participating in” (not just observing) recreational or sporting events. Teens in particular want a device that can take a licking: more than half of 13-17 year olds reported they’d look for waterproof/rugged features in their next image capture device, compared to 33 percent of all respondents. Do I take my smartphone horseback riding and shoot my friends galloping down the trails? I used to… until I wised up and got a waterproof shockproof capture device that still takes better video than my smartphone (and won’t die if it lands alongside my bucked-off self in a rocky creek)

Long term, I think many of us would agree that the pocket camcorder will be an endangered species; that’s the nature of evolution. But we have more ground to cover before we call it a day in this niche. Exciting action in both hardware and accessories lies ahead – should be muddy good fun.

At first I admit, I didn’t take any pictures. I was being careful not to fall down and crush the camera with my fancy helmet (skiing safety has clearly been upgraded since the 80s). Then I realized the kids weren’t going to jump off of the ski lift and I was going to live through the day without cracking a bone, so I relaxed enough to take a few cute shots of them on their rides up the bunny slope lift.

Then I got a text from my friend whose son was with us, asking for some pictures and a video of her son that we could send to her mom who was very ill and in the hospital. Frankly, I hadn’t even thought of the smartphone as a capture device for the day, but for this occasion, my idea of the smartphone image quality as “questionably good enough” turned into a small miracle as I shot the little guy zooming down on his snowboard. I emailed video and pictures right to his grandmother’s hospital room where she was suddenly not isolated and bedridden, but on a sunny mountain watching her grandson flying by.

As the day went on we traded back and forth among the cameras, the flash camcorder, and the phone, depending on who was with the kids, who had taken off their skis, and was taking a rest because their ski boots were killing them. Of course there are other options to the way I captured and shared images that day. I could have been more “prepared” with waterproof, shockproof, freeze proof, and wifi with a different camera and memory card. But, in this one case, none of that mattered. The cameras and camcorder were there to help us remember and celebrate later, in a beautiful glossy photo book or in full HD on a huge flat-screen. But the value of a simple image and a video to transport an experience as it was happening, to someone who wasn’t able to enjoy it in person, was real and unexpected joy.

Photography is not just about great image quality and aspiring to a perfect shot, but what it means to the recipient, how it can change a day, how it changes lives, and connections. That’s what this business has always been about; new technology enabling us to do it better every day. And you don’t even need to wear a helmet.

Last week, this mom was sitting blissfully in the audience of the musical Mary Poppins, as the practically perfect nanny flew overhead with a serene smile (it was truly amazing) and I thought WOW have times changed. Not only are there no floating nannies, but it’s largely a do-it-yourself world, in this economy and as moms.

We are saddled with making dinner for a small army, paying the bills, driving the kids to karate, packing for the camping trip and, oh yeah, going to work. But we somehow find time to check in on Facebook to catch up with friends, swap the day’s war stories, share a few pictures, and maybe play a few games. It’s our release.

Photos have become part of our being in a new way; the immediate gratification of sharing them every day online means we’re not printing snapshots like we used to. Shutterfly’s Q1 2009 earnings call illustrated the importance of focusing beyond the traditional snapshot – 4×6 print revenue down; personalized products and services up. Cut-throat print prices alone aren’t going to spur printing for the long haul, and certainly aren’t growing profits.

Let’s take our DIY culture and consider the love/hate relationship we have with printing our photos. We don’t have the time to make a photo book every day, or even every month, and we feel guilty as the loads of pictures we’ve taken and (fingers crossed) dutifully archived pile up unseen. Let’s face it, it still requires a lot of patience and time to scour through hundreds of photos and fit them perfectly into a template which may not be quite what we wanted. But for those of us who have toughed it out, there is no greater feeling than producing a hardbound book of very special pictures, telling our family’s story, and sharing it with those we love.

Forget cut-throat prices, I am producing something priceless. I am Mom, empowered family memory publisher, guilt assuaged! I’m fairly floating just thinking about it, serene smile on my face. And as for a spoonful of sugar, a box of chocolates provided with every finished photo book would be most delightful.

Marketers in the nearly saturated point-and-shoot digital camera segment must demonstrate tangible improvements to convince consumers to invest in new camera functionality. Zoom was a key word in imaging at CES, with new slim form-factor 10X entries from Samsung and Olympus on the horizon and zooms over 20X from Kodak and Olympus, all incorporating wide angle. With DSLR kits reaching new lows in the $400 average price range, 2009 will be a pivotal year to observe consumer choices in the DSLR / long zoom compact camera upgrade as these prices start converging.

With niche appeal beyond the zoom, Casio went for speed in a compact, packing its 30 frames per second burst shooting of 2008 into its new line of smaller models, enabling Matrix-like effects in a pocket camera. From high speed to improved functionality, Sony kicked digital camera WiFi up a notch with the CyberShot G3; it enables not just one-click uploads to popular photo sharing sites, but also a real web browser to enable password input.

From niche to simple, the tangible point, shoot, preview, print of the Polaroid PoGo Instant Digital Camera brings nostalgia dating back to 1948 into modern times. Reviving the instant camera with a twist, the Pogo embeds Zink inkless color printing into a Polaroid digital camera for on the fly 2×3 prints.

In an era likely more reflective of evolution than revolution, we expect to see more color, slim form factors, and in-camera editing as we approach PMA.

Not only were point-and-shoot camera unit volumes down, but DSLRs declined in units for the first time ever in our weekly data, although just by one percent, despite a lower average price of $618. NPD’s Consumer Technology Holiday Snapshot report revealed that a quarter of those who were intending to buy a DSLR this holiday season were going to put off their purchases. Digital picture frames, 5 inches and greater, were still up 10 percent in units, and were one of the few categories of unit growth over Black Friday, but down seven percent in dollars.

It’s clear that on top of the recession, saturation is playing a large part in the lackluster performance specifically for the point-and-shoot digital camera segment. Three quarters of U.S. households have at least one digital point-and-shoot camera. Retailers and manufacturers need to find ways to reignite a passion among those who may be waiting to trade up. They have to be more aggressive and creative in messaging to consumers, not just about buying cameras, but about all the connections consumers can make with their personal images.

In NPD’s latest recent camera buyer study, we found that the multimedia side of recent camera buyers is coming out – sharing pictures and videos through social networking sites is on the rise. But soft viewing and image sharing have been elusive when it comes to making money. On the printing side, we find that while consumers respond predominately to low prices, word of mouth and in-store displays are key influencers when making decisions about how and where to print. Ordering printing services online is on the rise, and the greatest increase has been among those who order online and pick up in-store. These multiple touch points allow marketers both to personalize online messages and expose consumers to new ideas through physical display, both photo capture and output-related, once they reach the store.

Cameras are facilitators to making connections with each other in ways many consumers aren’t even imagining. Even in tough times, while some consumers are holding off on their next camera purchase, there is a pivotal opportunity to promote less expensive, more personal printed items like photo books which can help keep imaging top of mind and moving forward. Consumers motivated to do more with their images should in turn be inspired to see the value of upgrading to fuller featured cameras.