My explanation of Kodak's behavior is thus: Kodak's management in the 1990's were caught flat-footed by the digital migration. The stock took a severe hammering from which it will probably never recover. Now they are trying to reposition themselves as an "imaging" company. To do this they MUST distance themselves from film, otherwise investors will think that the company management has not reformed and is still looking to film for its future.
From the website we can see that Kodak sees the world through exactly two lenses: Consumer and Professional. Their marketing folk don't understand the high-end hobbyist/fine artist market in the way that, say, the new management at Ilford do. We can argue about how big this market is, but I think there's good evidence that Kodak does not recognize it or understand it in the way that Ilford does.
For this reason I think we should be concerned about the future of Tri-X and other Kodak film products. Kodak CAN'T afford to have film as part of it's strategic plan. I could easily see a case where film gets axed as part of a reorganization. It has nothing to do with profitability. Large companies frequently sell off profitable lines if they are seen to distract from their core business. In fact this is encouraged because it generates cash.
A better, smarter future would be something like what happened at Ilford. New management that understands the market takes over the product. If Kodak was smart they would do a spinoff in house using their internal resources but giving it a new image: Kodak Fine Arts, or something like that. This would enhance the overall Kodak brand while not threatening its status as a forward-looking "imaging" company and would cost them very little.
If they are not that smart, they will sell the film unit to investors who understand the market. The investors are out there: look at Ilford.
If Kodak management are truly stupid (a possibility), they will just eventually discontinue their film line altogether.
There is money to be made in properly-serviced niche markets. Just ask Warren Buffett (or read his book). He likes to buy highly specialized companies that have a good markup and high barriers to entry. I think artist photo film is just such a market. A roll of film consists of only a few cents worth of materials but sells for nearly five bucks. Quality is valued and we the users with our much-loved cameras and lenses are willing to pay for it. And nobody is going to start a competing film business any time soon.
Okay, I've written the business plan. Who's got Warren Buffett in their Rolodex?
