Problem Statement:

Today’s amateur snapshot photographers benefit from recent innovations in digital photography.   Image capture has no scarcity - no practical limitations associated with it.  This freedom to take 200 pictures in an afternoon has generated an extraordinary quantity of raw images.

But in this shift to digital photography, a significant loss in delivered value has occurred for ordinary 'snapshot' photographers - those who seek simple mementos and printed image products to share experiences.  While the economy and improved accessibility/usability of this software has converted some amateurs snapshot photographers to photo technicians, there remains considerable pain - few digital images are preserved.

No service has directly addressed the gap between consumers ('snapshot' photographers) who simply want polished, delivered mementos  from their images - not a new hobby.  A service that provides a degree of organization for their digital images to allow them to quickly and effortlessly integrate these digital images into their busy lives - create books, short videos and others mementos for gifts, events and celebrations.

What about all the smart folks focused on making life easier for these busy consumers?

The current solution providers in this consumer space can be broadly divided into two sectors: 

1. The web based photo management services (Google, Shutterfly, PhotoBucket, Riya) compete for sign-ups, eyeballs and repeat visitors. They aspire to take a slice of revenue from conventional photo finishers (prints/calendars/books) or to provide these services themselves.  These vendors have focused on improving web-based upload, editing and layout tools to simplify the “post-processing” work that is necessary to produce enjoyable mementos (retouch, layout, cropping, red-eye elimination).  Microsoft   These software enhancements have enticed "hobbyists", more sophisticated amateur photographers, to adopt these tools. 
2. A second category are the ink-vendors (Epson, HP, Lexmark, Kodak).  These vendors are improving their printers, buying and developing software solutions and launching kiosks services to grow and retain their share of today's photo finishing market.

One side-effect this has had in the price points for creative tools is to drive the price for basic photo retouch software from above $500 to free.  This price compression can be also seen in professional photo management tools. 

The vendors who have brought about this fundamental economic change may not be well-positioned to propose or deliver a complete consumer-centric solution.  Ink vendors (HP, Epson, Lexmark, Kodak) will continue to build solutions that sell ink (Kiosks, Branded Retail presence, High-Quality Personal printers); Software developers have a solution that requires more attachment to their software (Adobe, Google-Picasa, Apple-Aperture, Microsoft, Corel).  Publishers have also recognized this gap (O'Reilly) and will continue to "solve" this problem in their own way. ('Head start' brand books)