Shutterfly Teams Up With Sony in Continuing Effort to Grow Business

Jun.29.10 | About: Shutterfly, Inc. (SFLY)

Shutterfly Inc. (NASDAQ:SFLY), the leading provider of Internet-based social expression and personal publishing service, recently announced that it has teamed up with Sony Corporation (NYSE:SNE) to provide its photo book experience to Sony VAIO PC customers. The financial terms of the deal were not disclosed.

The agreement will enable Sony VAIO customers to create a Shutterfly photo book directly from their desktop via a pre-installed icon, without having to first upload a photograph on Shutterfly.

Users can choose and order the photo book from one of its 21 styles. Customers can edit the book by changing the book size and cover type, rearrange photos, and add captions.

Shutterfly’s flagship product is its photo book line. Its photo books, available in five sizes, can accommodate between 20 and 400 photos.

Shutterfly is focused on growing its business through strategic partnerships and advertising programs. Last month, the company had announced its integration with the social networking site Facebook, which allows users to create a photo book by accessing their photos as well as their friends’ simultaneously. In addition, the company continues to explore and invest in the growing mobile marketplace.

We believe these initiatives will enhance Shutterfly’s brand awareness and make it more cognizant to customer insights, which will help leverage its existing assets and long-term growth. With increased investment in technology and development, the company is also strengthening its footprint in E-commerce and online digital photography, which will likely provide it a competitive advantage over its mainstream peers such as Snapfish and Eastman Kodak Co. (EK).

We currently have a Zacks #3 rank on Shutterfly which translates into a short-term Hold rating.