Kodak’s Digital Irony: How the Company That Invented the Future Destroyed Its Own
Kodak’s Digital Irony: How the Company That Invented the Future Destroyed Its Own
Despite pioneering the digital camera, Kodak’s reluctance to disrupt its own film business led to a historic collapse.
Kodak, once a titan in the world of photography, serves as a textbook case of what happens when innovation is ignored rather than embraced. At its peak in the 1970s, Kodak held 90% of the American photographic film market and 85% of the camera market, operating on a razor-and-blades model, selling cameras cheap and earning massive profits from film, paper, and chemicals.
Ironically, Kodak had the future in its hands when engineer Steven Sasson invented the first digital camera in 1975. But rather than seizing this breakthrough, Kodak shelved it. The leadership feared digital photography would cannibalize their lucrative film business and resisted shifting their core strategy.
As digital photography gained popularity through the 1990s and early 2000s—driven by companies like Canon, Sony, and later, smartphone makers, Kodak remained tethered to its legacy. While it eventually entered the digital space, its efforts were hesitant and too late. Competitors had already established dominance by the time Kodak fully pivoted.
Mounting debt and plummeting film sales took their toll. Attempts to diversify into printers and digital products failed to restore profitability. In 2012, Kodak filed for bankruptcy.
Kodak’s fall is not just about missed business opportunities, it’s a sobering lesson in how fear of change and short-term profit protection can bring down even the most dominant empires. Innovation alone isn’t enough. Without the willingness to disrupt oneself, even pioneers can be left behind.
