MEITU, the biggest photo editing mobile app, is chosen by 13% of editor app users, and has a 7% payment rate outside China. However, VSCO's payment rate is about 2%. Since users of editor apps and camera apps share similar characteristics, we estimate an average payment rate of 4.5%. We are pricing our subscription at $120 per year
It's important to note that the market size we have calculated here is solely based on the current revenue model, which is centered around revenue from premium user subscriptions. We have not taken into account the potential for additional future revenue streams. We’ve chosen to present the figures in this simplified form to facilitate an easy initial understanding for the reader."
The photography market can be divided into two categories: photography services and applications. This division indicates that photography is a traditional market with ample opportunities for automation, particularly in service-based tasks, which can be incorporated into application features. There is still substantial room for growth in the application sector.
To what extent can photography services be integrated? While there isn't a precise figure, my audacious estimate is at least 23% (See % of high penetration industries below). We aim to supplant the services rendered by photographers who haven't cultivated a distinct signature style, which constitutes the lion's share of the market. Such photographers engage in monotonous, repetitive tasks daily. Complete substitution is impossible; however, as we empower the general public to elevate their photography skills, they will become less dependent on photographers.
<aside> 💡 Source: the photography in the following industry will be impacted by Lookr:
| Industry | %Photographer | Penetration |
|---|---|---|
| Media | 15% | High |
| Education | 8% | High |
| Professional | 13% | Mid |
| Start-up | 3% | Mid |
| Non Profit | 3% | Mid |
| Internet | 4% | Low |
| Technology | 4% | Low |
| Fortune 500 | 8% | Low |
| Manufacturing | 7% | Low |
| Retail | 15% | Low |
| Health Care | 2% | Low |
| Others | 18% | Low |
| </aside> |
Why the market size of applications is not on par with that of services? My hypothesis is that the market for applications is predominantly occupied by editing tools. A remarkable photograph is the result of an excellent shot followed by adept editing, but presently, capturing a great shot is heavily reliant on the skills of photographers, which falls under the purview of photography services. In essence, the growth of applications is hindered by the absence of proficient shooting applications. The AI technology we are bringing to the fore has the potential to be a game-changer in the current market landscape.
How are we going to integrate AIGC, photography service, and camera markets? In essence, we have a feature termed 'Spark' that serves as a cornerstone for this integration. Through Spark, we source exceptional photos from professionals or AI-generated images that users can draw inspiration from. The AI, which is meticulously trained, then bridges the gap between these Spark images and the real-time scene in front of the camera. This integration facilitates a seamless transfer of photography knowledge directly within the camera interface, empowering users to enhance their photography skills while actively using the camera. For a more in-depth understanding and detailed steps on how this interaction unfolds, please refer to our User Journey page.
"Why does Adobe command 10 out of 12 billion in the application market? In brief, current photography apps lack the robust capabilities of Lookr (see our application competitor analysis) to instantly enhance photo quality. Because of this deficiency, the remaining 2 billion is mainly occupied by other editing apps like VSCO, which is lightweight compared to Adobe and primarily targets consumers. However, as most native cameras offer basic editing features, the market for consumer-focused editing apps is limited.
Why does Lookr initially target consumers despite professionals having more spending power? Firstly of all, professional market is in our roadmap, but it is beneficial to solve it in later stage. Building Aesthetics AI using consumer data is our Defensibility , which will provide a long-term advantage over competitors and unlock future revenue potentials: a strong brand among consumers can also facilitate our entry into the professional market and secure more B2B contracts. Moreover, consumers seek automation for an effortless shooting experience, a need that new AI technology can meet - we are at a good timing. In contrast, professionals are willing to invest time in learning and improving as it's their livelihood. They seek inspiration to develop their unique style, a less quantifiable need. For Lookr, it has a great potential but higher risk. Catering to this personalized style growth is part of our vision, and we plan to address this in Lookr's later stages, thereby expanding into the professional market."