Digital Frame Market Index up 18% in March but still 29% below December 2006
In January, we introduced the Digital Frame Market Index (DFMI). Wikipedia defines index (as it relates to economics or finance) as a single number calculated from an array of prices or of quantities. We are most familiar with the Consumer Prices Index (CPI) or the Gross Domestic Product (GDP). Values of an index in successive periods summarize level of the activity over time or across economic units.As a refresher, the objective of the DFMI will be to summarize the level of activity associated with the emergence of the digital frame market by looking at buyers and sellers.
Supply-side indicators were very positive with both BestBuy and CNET rapidly increasing the number of digital frames being offered. The demand-side indicator, web searches on “digital photo frame” and “digital picture frame” fell for the third straight month. The strong supply-side growth led to a 17% month-to-month increase in the aggregate index, still 29% below December’s level.
We have seen a recent increase in press coverage of the digital frame market. A positive story on Kodak’s wireless digital frame appeared in the Wall Street Journal Online on April 18th. As a result of these press pick-ups coupled with mother’s day shopping, we anticipate moderate index gains in April and May.   Â
 For more on the index, see Introducing the Digital Frame Market Index (DFMI)
