Study and Analysis of Direct Digital Imaging

Study and Analysis of Direct Digital Imaging Table of Contents Executive Summary i The Environment for Print iii Digital Workflow is Key v Computer-to-Polyester (CtPoly) v Direct Imaging (DI) Press vi Computer-to-Plate (CtP)O vii 2-up CtP Market viii 4-up CtP Market viii 8-up CtP Market ix Very Large Format Market ix Newspaper Market x Variable Imaging Press Market x Summary and Implications Overview xi Chapter I Introduction and Definitions 1 Introductory Overview 1 Digital Definitions 3 Chapter II Program Objective, Scope and Methodology 9 Objective 9 Scope 10 Methodology 10 Chapter III Direct Imaging Market Dynamics 17 Overview 17 The Environment for Print 17 The Economy and Related Factors 17 Alternative Media Competition 25 Print Volume Commentary 28 DI Press and CtP North American Market Potential 30 Press Installations Market Size for CtP 30 Plant Market Size for DI Presses 33 State of Direct Imaging Technology 39 Overview 39 Computer-to-Film (CtF) 41 Computer-to-Plate (CtP) 42 The Direct Imaging (DI) Press 46 Variable Imaging (VI) Technology for Static Printing 48 Digital Imaging Technology Status 50

Market Drivers and Barriers 51 The Market Speaks 51 The Dynamic Trio - Time, Quality, Costs 52 Production Cycle Time 52 It is the Workflow That Counts 56 The Quality Driver 56 Comparative Analysis of Direct Digital Imaging and Conventional Technology Economics and Productivity 57 Operating Cost and Productivity Analysis 57 CtFilm and CtPoly 59 Capacity Loading Factors 60 Workflow Savings 61 Productivity and Cycle Time 61 Quick Turn Service 62 Material Costs 63 Impact of Finishing and Binding 63 Bundling of Purchases 64 Comparisons of Direct Digital Implementations 64 4-up CtP Advantages 66 Time Cycles 67 It All Depends 67 ROI Analysis 67 Pricing Analysis 70 Run Length Trends 72 Print Buyers' Requirements and Attitudes 77 Influence, Impact & Knowledge 77 A Two-Way Street CtP Insistence 78 Specifying DI for Two-Page Color Presswork 79 VI Press Potential 79 Digital Imaging Color Quality 80 Cost Reductions 81 Buyers' Attitude 83 Digital Workflow Solutions 83 Overview 83 Intangible Benefits 84 Seamless Coordination 85 Proofing Issues 86 File Formats 87 Disciplined Workflow 88 Legacy Film Barrier 89 Digital Production Workflow Elements 90 Design Tools Trends 94 Example Design Too l Vendors 94 Front End Solutions 96

Example System Providers 96 Front End Solutions 97 Example System Providers 98 Front End Solutions 99 Example Stand-alone Providers 100 Example System Providers 101 Proofing Trends 103 Example System Providers 104 Workflow Impacts CtP/DI Device Penetration 107 Chapter IV The Status, Implementation and Application of Direct Digital Imaging Technology - Circa 2002 109 Full Format Computer to Film 109 Computer to Poly (CtPoly) 115 Computer-to-Plate (CtP/Metal) 117 Overview 118 Growth Inhibitors 119 Market Growth 119 Impact of Conventional Plate Imaging 120 On-Press CtP or Direct Image (DI) Printing 122 History of CtP 123 Technologies and Trends 124 Plates for CtP 126 Plate Costs and Performance 130 Plate Costs 130 Plate Availability and Quality 131 Press Plate Performance 131 Makeready - Register 132 Coming Up to Color 133 Plate Remakes 134 CtP Products 136 Direct Imaging On Press 143 Specially Built DI Presses 146 The DI Bolt-On 147 Erasable Image Carriers 148 Spray-on Technology 150 The Future of the DI Press 150 The 2002 Bottom Line 156 Variable Imaging Presses Producing Static Content 157 Hybrid Press Developments 158 Chapter V The Real World --- Case Histories of Printers' Direct Imaging Decisions and Technology Applications 158

Chapter VI Outlook for Digital Printing 212 Computer-to-Film (CtF) 213 Computer-to-Polyester (CtPoly) 218 Computer-to-Plate (CtP) 221 2-up Metal Plate CtP 222 4-up Metal Plate CtP 223 8-up Metal Plate CtP 225 Very Large Format CtP 227 Newspapers 229 CtP Metal Plate Equipment Summary 231 CtP Digital Plate Consumption 232 Direct Imaging (DI) Presses 234 The 2-up DI Press 235 The 4-up DI Press 238 The 8-up DI Press 240 Erasable Cylinder - Web 242 Hybrid DI 243 Newspaper DI 243 Chapter VII CtP and Related Changes Since 1997 244 Chapter VIII Conclusions and Implications for GAMIS Members 248 Situation Overview 248 CtP Equipment and Materials Manufacturers 250 Digital Imaging Supplier Implications 252 4-up and 8-up DI Press Manufacturers 253 Film Manufacturers and Distributors Implications 253 Imagesetter and Film Suppliers 254 CtP Equipment Manufacturers 254 Metal Plate CtP Manufacturers 255 Implications for Variable Imaging Press Manufacturers 255 Implications for 4-up and 8-up Printers 256 Epilogue 257 Appendix A Interview Forms and Discussion Guides 1 Appendix B Government Statistics 19 Appendix C U.S. Printing Shipments 22 Appendix D Job Specifications 24 Appendix E Suppliers of CtP Devices and Equipment 30

Study and Analysis of Direct Digital Imaging Exhibits Exhibit ES - 1 - Direct Digital Imaging Market Size xi Exhibit II - 1 Summary of Program Interviews 14 Exhibit III - 1 - U.S. GDP Real Growth Data 23 Exhibit III - 2 - Total U.S. Printing Volume 29 Exhibit III - 3 - Total U.S. Printing Volume Forecast 30 Exhibit III - 4 - Metal Plate CtP North American Primary Market Potential 31 Exhibit III - 5 - Polyester Plate CtP North American Primary Market Potential 33 Exhibit III - 6 - DI Press North American Primary Market Potential 36 Exhibit III - 7 - Direct Digital Imaging Market Potential 38 Exhibit III - 8 - Print Market Plant Reduction 39 Exhibit III - 9 - Typical Job Run Lengths 75 Exhibit III - 10 - Typical Digital Workflow - One Piece Film Output 91 Exhibit III - 11 - Typical Digital Workflow - Computer-to-Plate 92 Exhibit III - 12 - Typical Digital Workflow - Computer-to-Press/DI 93 Exhibit III - 13 - Proofing for Lithography Market Share Forecast 107 Exhibit IV - I - Imagesetter Film Consumption Index 111 Exhibit IV - 2 - New Imagesetter Equipment Installation Index 112 Exhibit IV - 3 - Sheetfed Plate Remake Data 135 Exhibit IV - 4 - CtP Products 2-up 138 Exhibit IV - 5 - CtP Products 4-up 139 Exhibit IV - 6 - CtP Products 8-up 140 Exhibit IV - 7 - CtP Products - Very Large Format 141 Exhibit IV - 8 - Flexo CtP - Gravure Direct Cylinder Engraving Products 142 Exhibit IV - 9 - North American Metal CtP Installed Base 143 Exhibit IV - 10 - Commercially Available DI Presses 145 Exhibit IV - 11 - North American DI Installed Base 155 Exhibit VI - 1 - Forecast of North American Imagesetters 217 Exhibit VI - 2 - Imagesetter North American Film Consumption 217 Exhibit VI - 3 - CtP Poly Direct Imaging Forecast Polyester Digital Plate - North America 220 Exhibit VI - 4 - PrintCom Estimate of Dedicated Polyester CtP Poly Equipment in North America 221 Exhibit VI - 5 - PrintCom Estimate of CtP Installed Base in North America - 2-up Equipment 223 Exhibit VI - 6 - PrintCom Estimate of CtP Installed Base in North America - 4-up Equipment 225 Exhibit VI - 7 - PrintCom Estimate of CtP Installed Base in North America - 8-up Equipment 227

Exhibit VI - 8 - PrintCom Estimate of CtP Installed Base in North America - Very Large Format 228 Exhibit VI - 9 - PrintCom Estimate of CtP Installed Base in North America - Newspapers 231 Exhibit VI - 10 - PrintCom Most Probable Estimate of CtP Installed Base in North America 232 Exhibit VI - 11 - CtP Metal Plate North American Volume - Plate Shipment Index 233 Exhibit VI - 12 - PrintCom Most Probable Estimate of CtP Plate Consumption in North America 234 Exhibit VI - 13 - PrintCom Estimate of DI Press Equipment in North America - 2-up Equipment 238 Exhibit VI - 14 - PrintCom Estimate of DI Press Equipment in North America - 4-up Equipment 240 Exhibit VI - 15 - PrintCom Estimate of DI Installed Base in North America 242