nathanmallard
Well-known member
I use HTP so this doesn't effect me apart from the hundereds of missing images I now see on this forum.
Interestingly, a lot of people online think this move is absolute commercial genius because even if only 1% of users pay the $400 that'll still make Photobucket millions. I totally disagree and I don't even think 1% will pay. My thoughts are summed up in this comment online:
"If 0.5% of the 100M users pay the $400, they make $200M the first year.
What if they had charged $5/month and 20% of the 100M free users stayed on? That's 6 BILLIONS dollars - fully 30 times what they make by pulling this stunt.
What about year 2, when the overcharged $400/year users gradually start migrating away?
What about the day after they pull this stunt, and not one single user signs up for new business because the cost is outrageous compared to any other web hosting or photo hosting service, even high-quality pay-for-service offerings?
I repeat: total cock-up. It gets them $200M now, if they are lucky, and it ends the company. My expectation is that after 6 months or so, they will realize the folly of what they have done and offer a suite of more reasonable lower-cost options."
Interestingly, a lot of people online think this move is absolute commercial genius because even if only 1% of users pay the $400 that'll still make Photobucket millions. I totally disagree and I don't even think 1% will pay. My thoughts are summed up in this comment online:
"If 0.5% of the 100M users pay the $400, they make $200M the first year.
What if they had charged $5/month and 20% of the 100M free users stayed on? That's 6 BILLIONS dollars - fully 30 times what they make by pulling this stunt.
What about year 2, when the overcharged $400/year users gradually start migrating away?
What about the day after they pull this stunt, and not one single user signs up for new business because the cost is outrageous compared to any other web hosting or photo hosting service, even high-quality pay-for-service offerings?
I repeat: total cock-up. It gets them $200M now, if they are lucky, and it ends the company. My expectation is that after 6 months or so, they will realize the folly of what they have done and offer a suite of more reasonable lower-cost options."