Scrapblog, a startup that lets you build rich Flash-based online scrapbooks, is announcing a deal with DreamWorks Animation to feature graphics from the “Shrek” film series. Shrek and other characters from the movie will be added to the Scrapblog Virtual Marketplace to allow users to add stickers, backgrounds and themes to scrapbooks.

Scrapblog, which raised $2.5 million from Disney’s Steamboat Ventures earlier this year, offers an online editor that allows users to decorate their scrapbook with text, images, colorful themes, and other embellishments, which can then be shared on the web or printed out. Scrapblog recently brought on a new CEO, Jill Braff, to lead the company after startup’s founder and CEO Carlos Garcia, stepped aside.

The startup is also launching a new product to its printed offerings: a 12” x 12” square glossy hardcover scrapbook. The company was first introduced back in 2006, briefly went offline, and relaunched in March 2007.

According to Compete, Scrapblog only had 84,000 unique visitors in September. The online scrapbooking space is tough considering that Flickr, Apple iPhoto and other popular photo sharing sites now offer high-end scrap booking options for consumers. But the scrapbook business could be a $2 billion market, and with potential acquisitions. Most recently, digital scrapbooking startup ScrapHD was bought by craft store chain Michaels.

Crunchbase

• SCRAPBLOG

Company: Scrapblog

Website: scrapblog.com

Launch Date: 2006

Funding: $10M

Scrapblog is an online, flash-based multimedia scrapbook editor. It allows you to quickly combine your images, audio, and video into ‘scrapblogs’.

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