The Free 8 by 10

The Olan Mills studios started in Tuscaloosa, Alabama in 1932 by Olan and Mary Stephenson Mills. They are still today the largest photo “empire” in North America. Their studio sales have been plummeting in the last five years with the advent of digital, but it's still a $250 million per year business. It's based on three free 8 by 10 photos! The three sessions are spread out 2-3 months apart and the “customer” receives a complimentary 8 by 10 print from each session. Bring the kids; bring the family…

Sales are not as good as it used to be. It was a $400 million per year business. Many studios have closed, but still $250 million per year is nothing to sneeze at. They closed their UK operations in 2008.

Meanwhile at the ranch (in Tennessee), Olan Mills has sales of $800 million per year and is growing. You see the company has two divisions:

1. Olan Mills Portrait Studios. They are not doing too well. Less and less people want the formal studio portrait with the standard two lights and the white background.
2. Olan Mills Church Division. These guys are doing very well and they are growing. They make church directories, they make photos of the church members, and they also integrate the photos into the church membership software…

The Olan Mills Church Division accounts now for almost 75% of the business. Not only that, it's much more profitable, there's very little competition. Uncle Harry, with his new Sony A77, can't photograph 837 people¹. They make their money in printing and selling the directories, selling photos to the members… It's still portraits most often done with two lights and the white background.

Olan Mills Church Division continues the tradition of the free 8 by 10, by giving to the church itself some free directories and by giving the members a free 8 by 10. The members can always buy more photos and directories.