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I chalk it up to a number of factors already mentioned in the thread:
1. Local development solutions becoming less economical and available (thank God I have Ritz, District Photo, and Dodge Chrome!)
2. An uptake in digital camera technology, packaging, and styling, especially by the likes of Sony and Fuji
And a reason I hadn't seen mentioned specifically but touched upon:
Kodak's bankruptcy. People are idiots. A lot of the American public, at least, think that "Kodak files for chapter 11" means "Nobody anywhere is making film anymore." They don't research, they don't really care, the news outlets misinform and sensationalize and THEY personally haven't bought film in a few years...so for all they know, it's true, even though brand-new fresh-dated Kodak is on shelves at Target and Walgreen's.
Hell, there's another so called "Film user" here at work (more of a camera junkie than a photographer) who *swore* to me Kodak stopped making all film in 2009 (When Kodachrome was discontinued.)
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