color publishing executive survey

8/14/2019 Color Publishing Executive Survey

1/19

Color PublishingExecutive Survey

Sum mary of Find ingsMarch 5, 1996

prepared by

Griffin Dix Research Associates

for App le Compu ter, Inc.http:/ / www .media.apple.com/ research/ pubnu ms.html

Color Pub lish ing Execu tive Su rvey Gr iffin Dix Resea rch Associa tes fo r App le Com puter 1


2/19

Color Publishing Executive Survey

Sum mary of Findings 3/ 5/ 96

Table of Contents

I n t r o d u c t i o n ............................................................................................... 3

I. O b j e c t iv e s a n d R e s e a r c h Q u e s t i o n s ...................................... 4Objectives ....................................................................................................4Research Questions....................................................................................4

I I . M e t h o d o l o g y ....................................................................................... 5

III . Sc r e e n i n g a n d Q u a l i f i ca t i o n o f Re s p o n d e n t s............

6

IV . A P r o f i l e o f t h e Sa m p l e ............................................................ 7Med ian and Average N umber of Emp loyees ..................................7Median and Average Revenue from Design and Pre-press

Computers, Average Revenu e per Employee - Past Year........8

V. So m e D e f i n i t i o n s .............................................................................. 9

VI. Su m m a r y o f Ke y F in d i n g s ....................................................... 1 0

Macintosh still dominates in for-profit color publishing ...............10Prop rietary p ublishing systems still being u sed a t some sites......12Macintosh rated most cost-effective system.....................................13Macintosh wins in key ROI calculation match-up s.........................14An interesting note about small sites ................................................15Replacement of proprietary systems in past 12 months.................15Plans for this year call for more replacements.................................15Multiple Macs replace retired p rop rietary systems ........................16Estimated market size..........................................................................16Number of proofs lower on Macs at top comp anies.......................17Con sumable costs low er on Macs......................................................18

Three of fou r color separa tions done on Macs.................................18ColorSync 2.0 gets off to great start...................................................19Ap pleScript use qu ite exten sive.........................................................19Apple color d isplays used at almost half of sites ............................19



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Introduction

Is MacOS really the p latform of choice in color pu blishing? How w idely used arepropr ietary publishing systems? What system really has the best ROI?

The answers to these questions and more can be found in this report prepared byGriffin Dix Research Associates.

Macs are #1This report shows Apples dominance in the color pu blishing industry. It tells usMacOS is #1 in installed units, #1 in calculated ROI, #1 in color separations, has thelowest # of proofs needed at top sites (sites with Macs, proprietary systems, Unix, andWindows), and h as mu ch lower consum able costs than Un ix and prop rietary systems.

Proprietary Systems on the w ay outOne of the m ain objectives of this study was to size the installation of prop rietary

pu blishing systems and determine the trend of replacing them w ith Macintosh systems.As you w ill see, it seems to be a large opportunity for App le: most of the propr ietarysystem ow ners are already rep lacing them.

Markets this stud y does cover:This stud y covers a high-end su bset of the pu blishing industry: Compu ter-AssistedColor Print Publishing for Profit custom ers. It surveys the best and th e brightest ofall pu blishing customers, but is not comp rehensive of the entire publishing market.

Markets this stud y does n ot cover:This study does not includ e the following pu blishing segments: One-color/ B&W print

pu blishing, pu blishing not using compu ters, publishing for work (corporate/ in-house), low-end / DTP pu blishing, new m edia pu blishing, mu ltimedia authoring andentertainm ent auth oring. Add itional market research surveys will be comm issioned byApp le to cover man y or all of these segments in the coming m onths.

I think you w ill find this information useful and qu ite interesting. We plan to askGriffin Dix Research Associates to up date this survey year ly and we may a lso expan d itto ask even more questions and cover more color publishing issues and trends.

Please feel free to contact myself or ou r p ress contact, Cathy Cloud, with questions orcomm ents on this survey.

Best Regards,

Brad G. Cooper, Press Contact:Econometrics Manager, Cathy CloudPublishing & Media Markets, for Apple Computer, Inc.Apple Computer, Inc. (415) 513-8800

cloud @mcleanpr.com



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I. Objectives and Research Q uestions

Objectives

(1). Size the installed base and share of Macintosh, Wind ows, Unix and p roprietarycomputer systems used for for-profit color pu blishing of printed m aterials.

(2). Estima te the Return on Investment (ROI) for proprietary color pu blishingworkstations and other compu ter systems vs. App le Macintosh systems.

(3). Size the opp ortunity of replacing prop rietary publishing workstations with AppleMacintosh compu ters and App le peripherals.

(4). Quantify usage of the following App le periphera ls and MacOS technologies:- ColorSync 2.0 color managem ent software

- AppleScript- App le Color Displays

Research Qu estions(1). What are the number of proprietary pu blishing workstation systems in u se in the

U.S.?- Compare w ith number of Desktop PCs (Mac and Window s)

(2). What are the futu re plans for replacing proprietary systems?- When, how man y, cost of proprietary systems replaced?

- How m any PCs to be pu rchased per p roprietary system replaced?- Will they bu y Macs, Wind ows PCs, or other systems?

(3). What is the number and % of color separa tions being d one on Desktop PCs vs.prop rietary p ublishing systems?- Details on Mac vs. Wind ows in d esktop space

(4). What is the reported an d calculated Return on Investment (ROI) for the propr ietarysystems vs. Macintosh systems?- How long is each system kep t before it is discarded ?- Quantify some hidd en costs of using each system, such as, nu mber of proofsand consum ables costs. (Futu re stud ies to get more qualitative information andadd training costs, system administrator costs, repair costs, etc.)

(5). Quan tify usage and w ith key Apple prod ucts and technologies:- Color Sync 2.0 - AppleScript- App le Color Displays



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II. Method ology

The survey sample is designed to represent five segments of the publishing for profitindustry : ad agencies, grap hic design stud ios, pr inting facilities, pu blishing comp aniesand pre-press service bureau s using comp uters for creating, retouching and printing

color p ublishing jobs.

To attain these objectives, samples of subscribers were obtained from tw o pu blications,Color Publishing an d Pre. Both are controlled circulation publications that were able tocontribute sam ples in the five specific segments, based on th e subscribers subscriptionapp lication card responses. Teleph one interviews were begun on Au gust 1 andcompleted on August 11, 1995 .

Color

Publishing

Magazine

Completed

Interviews

Pre

Magazine

Completed

Interviews

Total 300 300Ad agencies 58 60Graph ic design stud ios 60 60Printing facilities 60 60Publishing comp anies 60 60Pre-press service bu reaus 62 60

Telephon e interviewin g dispositionTotal ineligible 490

Do not create, retouchor p roduce color p ublishing jobs (Q.1)160Do not influence purchase of

comp uter systems, work oncolor pu blishing jobs or managepeople who do (Q. 2-3) 26

Wrong number 110Number no longer in service 194

Potentially eligible resp ond ents 2489Completed interviews 600

Answering machine 1173Refusals 144Only person qu alified, not available 106No answer 355Busy 102Refused mid-interview 9

Among potentially eligible respondents who were called, interviews were completedwith 24 percent.



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III. Screening and Qualification of Respon den ts

Criteria were developed to qu alify both the w ork site and the individua l who an sweredthe qu estions at that site. To meet the w ork site qualification, all sites had to create,

retouch or prod uce color p ublications or advertisements.

To meet the p ersonal qua lification to be interviewed , respond ents had to say yes to oneor more of the following qu estions:

Do you influence or manage the purchase of comp uter systems for color publishingor ad vertising?93 percent of those wh o qualified answered yes to this questionseven percent of those wh o qualified answered no

Do you personally design, retouch or prod uce color publishing or advertising jobs

using comp uters?87 percent of those wh o qualified answered yes to this question13 percent of those who qualified answered no

Do you man age people who d esign, retouch, or produce color publications orad vertising jobs?80 percent of those wh o qualified answered yes to this question20 percent of those who qualified answered no



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IV. A Profile of the Sample

Median and Average Num ber of Employees

Total AdAgency

GraphicDesign

PrintingCo.

PublishingCo.

Pre-Press

0

50

100

150

200

250

300

Med. # of employees Ave. # of employees

Surveyed sites average 113 emp loyees at their work location. It is helpful toremember that averages can be deceiving because they may be influenced by arelatively small number of very large sites. Half of the surveyed organ izations have15 or fewer emp loyees and half have more than 15. Half of the graph ic design firmshave four or fewer employees.

Publishing companies are the largest, with an average of 251 employees and amedian of 37.

They are followed by p rinting comp anies, which average 151 employees and amedian of 50.



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Graphic design firms (average 59 employees, median 4) and pre-press servicebureaus (average 44 employees, median 25) are the smallest organizations.

Med ian and Average Revenu e from Design and Pre-press Compu ters,Average Revenu e per Employee - Past 12 Mon ths

Total

Ad

Agency

Graphic

Design

Printing

Co.

Publishing

Co.

Pre-press

Service

Bureau

Median revenue

from all design an d

pre-press computers,

past 12 months

400,000 1,750,000 75,000 1,000,000 500,000 400,000

Average revenuefrom all design an d

pre-press comp uters

5,896,000 12,281,000 1,267,000 8,544,000 9,788,000 3,127,000

Average revenue per

employee

52,177 186,076 21,475 56,583 38,996 71,068

The median revenue generated by d esign and p re-press computers during the past12 mon ths is $400,000 and the average is $5,896,000.

This amounts to an average revenue per employee of $52,177 per year.

Ad agencies generated the highest revenue from their design and pre-presscomp uters, an average of $12,281,000 and a median of $1,750,000. This amounts to ayearly average of $186,076 per emp loyee.

Pre-press services companies median revenue from d esign and pre-press compu terswas $400,000 and the average revenu e was $3,127,000. The average revenu e peremployee was $71,068.

Printing companies had a med ian revenue of $1,000,000 and an average of$8,544,000. Their average revenu e per employee was $56,583.

Graphic design firms had the lowest revenue, a median of $75,000 and an average of$1,267,000. Their average reven ue per em ployee was only $21,475.



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V. Some D efinitions

Color pu blishing The focus of this stud y is on comp uter systems being used for for-

profit color p ublishing of printed materials; that is for creating,retouching or p rodu cing pu blications or advertisements. In thisreport, Design and pre-press comp uters are the same as colorpu blishing comp uters.

Proprietary systems The survey questionnaire identified prop rietary systems torespondents as not off-the-shelf computers, but entire high-endsystems sold as complete solutions specifically for color designand pre-press. They cost $15,000 or more and use Un ix or a non-standard operating system, not Wind ows or Macintosh. Examp lesof these include systems sold by Scitex, Linotype-Hell, and Quantel.

However, some of these vendors also offer desktop-based (i.e..MacOS) solutions and these systems were not included in theprop rietary systems category.

Types of pu blishin g comp aniesCompanies that pu blish docum ents can be d ivided into:(1) Publishing for Profit--companies whose p rimary business isdocum ent p ublication or printing, which includ es most of thecomp anies studied in this research,(2) Publishing for Work--companies wh ose primary bu siness isnot pu blishing, but have in-house departments or ind ividu als wh o

create and p ublish documents,and (3) Casual/ DTP Publishing--ind ividu als who occasionally d olow-end desktop p ublishing.

The focus of this stud y is on segment # (1) Publishing for Profit.Future stud ies are planned for segment #(2) Publishing for Work.

Site This survey asks respond ents to answer questions about their ownlocation, rather than a ll the locations of their company, in otherparts of their city and in other cities. They are most likely to haveaccurate information abou t their ow n work location.



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VI. Sum mary of Key Findings

Macintosh d ominates in for-profit color pub lishing

In the five indu stries studied (advertising, graphic design, printing, pu blishing andpre-press services), nearly 9 out of 10 use at least on e Macintosh for colorpublishing jobs. 36% use at least one PC with Windows, 14% use proprietarypublishing systems, and 11% use at least one Unix workstation.

Share of Color Publishing Computers

MacOS80%

Unix2%

Proprietary4%Windows

14%

Of the sites surveyed, Macs make u p 80% of all color pu blishing comp uters u sed todesign, retouch or prod uce color pu blications or advertisemen ts at sites that createcolor advertisements or other color publishing jobs. Only 14 % of computers u sedfor this pu rpose are Wind ows PC's, 4% are propr ietary systems and 2% are Unixworkstations.

At medium to large sites (those with more than 5 employees), the share of Macsinstalled jum ps u p to over 85%.

Color Publish ing Execu tive Su rvey Gr iffin Dix Resea rch Associa tes fo r App le Com puter 10


11/19

MacOS Windows Pr o p r iet ar y Unix

0

1

2

3

4

5

6

7

8

9

Color Publishing Systems Per Site

The average site producing color pu blishing or advertising jobs has 8.3 Macsinstalled per site, 1.4 PCs run ning Wind ows, 0.4 proprietary publishing systemsand 0.3 Unix workstations. Sites that have at least one Mac for color publishing havean average of9.3 Macs installed p er site. Two ind ustries surveyed, publishers andpre-press/ service bureau s average over 12 Macs installed per site. And sites with51 or more employees average over 20 Macs installed per site .

An estim ated over600,000 Macin tosh system s are in place in the U.S. in theseindu stries used to d esign, retouch or p rodu ce color p ublications or advertisements.The estimated total valueof these Macintosh systems in these U.S. indu stries toproduce color pr int pu blications (includ ing disp lays, grap hics cards, and drives) isnearly $4.5 Billion .



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Proprietary pu blishin g systems still being u sed at some sites

Of all the sites surveyed, 14% use at least one prop rietary pu blishing system.However, 32% of service bu reau's an d 24% of printin g compan ies use at least oneprop rietary pu blishing system. In add ition, of comp anies surveyed with 51 or more

employees, 33% have a t least one prop rietary pu blishing system.

An estim ated 27,000 prop rietary pu blish ing system s are in place in the U.S. in theseindu stries used to d esign, retouch or p rodu ce color p ublications or advertisements.The estimated total valueof these systems in these U.S. ind ustries to produce colorprint pu blications is nearly $4.2 Billion .

Although proprietary systems account for only 4% of the unitshare of comp utersystems used for color publishing at th ese sites, they accoun t for 38% of th e totaldollar share of all systems u sed.

Of those sites using p roprietary systems, 98% are also using at least oneMacintosh. In fact, on average, these sites with prop rietary systems have more than15 Macs per site . So, these sites are using Macs in conjunction with p roprietarysystems, but have not yet sw itched ALL of their proprietary systems to Mac.

Share of Proprietary Systems Installed

Linotype-Hell16%

Scitex54%

Crosfield11%

SGI

9%

Barco4%

Others6%

Scitex has th e largest share of installed proprietary systems (54%), followed byLinotyp e-Hell (16%), Crosfield (DuPont, 11%), Silicon Graphics pu blishing systems(9%), Barco (4%), Quantel (1%) and others (5%).



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Macintosh rated most cost-effective system

The respondents in the survey were asked w hich comp uter systems were the most cost-effective for color publishing at their sites.

Systems Rated Most Cost-Effective

MacOS80%

Don't Know6%Proprietary

2%Windows

11%

Unix1%

80% of all respondents said Macs are the m ost cost-effective typ e of comp uter for

design and pre-press.

90% of sites that u se one or more Macs for design and pre-press said Macs were themost cost-effective. 60% of sites that use on e or m ore Wind ows PCs said Macs weremost cost effective and 31 percent said Windows PCs were most cost effective. Nomatter w hich comp uter systems sites were u sing for d esign and pre-press, all typesof sites ind icated Macs were the m ost cost effective by far.



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Macintosh w ins in key ROI calculation match-up s

In addition to asking respond ents w hich systems w ere most cost-effective, Griffin DixResearch also quantified the ROI for each system by asking a series of questions relatingto complete system pu rchase price, revenue generated p er system, and length of

ownership. The focus was p laced on Macs vs. proprietary systems.

MacOS Unix Proprietary$0

$50

$100

$150

$200

$250

ROI per month

The return on investment (ROI) from Macs is nearly 7 times h igher than that ofprop rietary pu blishing systems and over 6 times high er than that of off the shelfUnix workstations. This data gives strong sup port for these companies to movecolor publishing from proprietary systems to Macintosh desktop systems.Qualitative research is curren tly in p rogress to provide ad ditional info in th is area.

The ROI calculated for Mac systems at med ium (5-50 employees) and large (morethan 50 emp loyees) sites in these ind ustries is higher th an an y other systemincluding Window s PC's:

At medium size sites with 5 to 50 emp loyees, the ROI for Macs is 39% high er thanWindow s PC's ($566 per d ollar invested, compared to $408 for Window s PCs).

At large sites with 51 or more employees, the ROI per comp uter from Macs ($179 perdollar invested ) is more than 2 times higher than that of Windows PCs ($87 perdollar invested).



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Sites that use Macs and no PCs generate almost 2 times as mu ch revenue as sitesthat use PCs and no Macs. The average revenues are $5,630,000 per year from alldesign and pre-press computers at Mac (and no PCs) sites vs. $2,838,000 at sitesusing PCs and no Macs.

An in teresting note abou t small sites

Although firms with 1 to 5 employees make up 29 percent of all the color pu blishingfirms surveyed , they account for only 11.2% of the total revenue generated in theindustry. These sites do mu ch less overall volum e of color pu blishing work.

Replacement of prop rietary systems in past 12 mon ths

The ratio of proprietary systems retired in the past 12 months to the currentproprietary installed base is 8%. This compares with a ratio of 16% for Macintosh,9% for Windows PC's and 5% for Unix workstations. However, most Macs wereprobably replaced w ith new Mac mod els (as shown in other App le stud ies).

Of the respondents who were able to answer the question about w hich types ofcompu ters proprietary systems were replaced with*, 45% replaced p roprietarysystems w ith M acs, 45% with other prop rietary systems and 5% with Un ixworkstations. NON E replaced them with Window s PC's. *caution: small sample size.

Plans for th is year call for more rep lacemen ts

During the next twelve months, 14 percent of those with prop rietary systems (12sites of 85) plan to d iscard or rep lace them .

If these results are typical and 14% of sites with prop rietary systems plan to replaceone or m ore of them in the next 12 mon ths, then in five years 70% of sites withprop rietary systems will be replacing one or m ore of them.

Th e fact th at 48% of all installed p roprietary systems are at p re-press servicescompanies ind icates they are the best prospects for replacing propr ietary systemswith Macs. The next best prospects are printing companies (who have 24% ofinstalled p roprietary systems) and pu blishing comp anies (with 17% of installed

proprietary systems).

Of the respond ents who expect to replace proprietary systems in the next 12 months,42% expect to buy Macs instead of other p roprietary systems , 17% expect topurchase other proprietary systems and 17% expect to pu rchase off-the-shelf Unixworkstations. None expect to purchase Window s PCs. 3 respondents did not knowwh ich systems they would bu y in place of prop rietary systems. Although thissamp le is mu ch too small for a r eliable pro jection to the m arket, it is interesting to



16/19

note that 5 of 9 wh o answered this question said they expect to buy Macs in p lace ofthe p roprietary systems they are d iscarding.

Mu ltiple Macs replace retired prop rietary systems

Although the total sample size for those who reported how many systems will bereplaced w as very low an d shou ld be used w ith caution, an average of2.5 Macs willbe bough t to replace each prop rietary system retired. Future stud ies will explore theMac to proprietary system replacement ratio in more d epth.

Estimated m arket size

Combining Griffin Dix Research Associates survey d ata (three surveys with a totalof 1,390 respon dents) with estimates of the size of different m arket segm ents from

American Business Lists and Color Publishing Magazine, estimates. Griffin DixResearch estimated there are 125,000 total color publishing sites and over h alf ofthem (57 percent), or 71,250, are color pub lishin g sites in th e five ind ustriesstudied. The remaining 43 percent of the market included corporate in-house colorpublishing sites (38 percent) and educational institutions (five percent) doing colorpublishing jobs in-house.

The 71,250 color p ublishing sites in these five ind ustries average 8.3 Macs installedfor d esign an d pre-press work. This amounts to nearly 600,000 Macs in theseind ustries alone. It is also estimated that the num ber of sites doing colorpu blishing has grown since the last data w as available and that the nu mber of Macs

per site since Augu st 1995 has probably also increased.

The 71,250 color publishing sites in these five indu stries average 0.38 proprietarysystems installed. This amoun ts to over 27,000 proprietary systems installed inthese industries.

The total original price paid for all systems in these five ind ustries is $10.9 bil lion .

The total original value of installed Macs is estimated to be $4.5 billion . The tota loriginal value of these prop rietary systems is estimated to be $4.2 billion .

Macs accoun t for 42% of the total cost of installed systems, prop rietary systemsaccount for 38%, Unix workstations make up 15% and Window s PCs have only a5% share of the total origin al cost.



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Nu mb er of proofs lower on M acs at top compan ies

MacOS Un ix Pr o p r iet ar y

2 .1

2 .2

2 .3

2 .4

2 .5

2 .6

2 .7

# of Proofs Before Final

For the top high-end comp anies* (those with Macs, PC's AND propr ietary systems),Macs have the lowest nu mb er of proofs requ ired--15% less than propr ietarysystems and Window s PC's. *The samp le size here is small, so please use w ith caution.

A Mac to Windows comparison can be made between sites using Macs and no PCsvs. sites using PCs and no Macs for color pu blishing. When this comp arison is made,we find that 18% more proofs are made on the Windows PCs (average 4.7 before thedocument is final) than on th e Macs (average 4.0).



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Consum able costs lower on M acs

MacOS Unix Pr o p r iet ar y

$ 0

$ 5 0 0

$ 1 , 0 0 0

$ 1 , 5 0 0

$ 2 , 0 0 0

$ 2 , 5 0 0

Consumables Per Computer Per Month

Sites using proprietary systems have 3.5 times h igher consu mab les costs perproprietary system than sites using Macs per Mac used --$2,030 per m onth persystem comp ared to $580 per m onth p er system.

Sites using Unix systems have 66% high er consu mab les costs per prop rietary

system than sites using Macs per Mac used .

Three of four color separation s done on Macs; p roprietary systems stillbeing u sed, how ever

47% of the sites surveyed d o color separations in-house. How ever, 82 % of servicebureaus an d 61% of p rinting compan ies are doing color separa tions in-hou se.

75% of all color separation s don e in these indu stries are done at either servicebureau s or printing companies.

74% of all color separations d one in these five indu stries are carried ou t on Macs.13% are done on proprietary systems, 10% on Wind ows PCs and 3% on Unixworkstations.

Advertising agencies do 88% of their in-hou se color separations on Macs. 12% aredon e on Wind ows PC's.



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Printing comp anies do36% of their color separations on proprietary systems.Furthermore, almost 40% of these printing sites do 76% or more of their sep arationson p roprietary systems . Once again, this shows a great opp ortunity for replacementwith Macs.

Large sites (51 or more employees) do 31% of their color separations on prop rietarysystems.

ColorSyn c 2.0 gets off to great s tart

App les ColorSync 2.0 software w as released on March 28, 1995. This stud y wasfielded abou t four mon ths later, in the first week in August. Already, ColorSync 2.0had a 93%awareness among those surveyed. In addition, 14% of color pu blish ingsites were alread y actively using ColorSyn c 2.0.

Ofadvertising agency sites, the number jump s to 23% already u sing ColorSync 2.0.

Of graphic design sites, 19% were alread y using it.

Among users of ColorSync 2.0, 75% said ColorSync 2.0 was h elpfu l in man agingcolor .

At commercial publishing sites, 90% say ColorSync 2.0 has been help ful inman aging color; at advertising agencies, 80% say ColorSync 2.0 has been help fulin m anaging color

App leScript use qu ite extensive

18% said someon e in their organization uses App leScript and 10% of allrespond ents said they personally use it.

When looking at pu blishing sites and p re-press service bureaus, the numb er usingApp leScript jum ps to over 1 in 5 (21-22%).

At sites with more than 51 emp loyees, the number jum ps to over 1 in 4 usin gApp leScript (26%).

Of those respond ents who w ere personally using App leScript, they said that theyhad created an average of over 10 scrip ts in the past year.

App le color displays used at almost half of these sites

42% of the sites use at least one Apple color display. That number is highest atadvertising agencies where nearly 50% use at least one Apple color d isplay.


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