I was listening to the great This Week in Tech PodCast and they came up with a fascinating little story about Yahoo! and Flickr.
Flickr now has 10 million members, all posting photos like crazy. Guess how many orders for prints etc they get every week? 100,000? 10,000? Actually, it’s 80.
To rub salt into the wound, it isn’t a cheap service to run, especially as it hogs bandwidth. For instance, many sites link to Flickr, like I have above. And guess what – it’s their bandwidth that’s being used, not ours.
It would be interesting to know how many $24.95 Pro accounts they have. But it seems overall, it’s a big loss maker.
Clearly, it wasn’t the worst deal of last year – how can you beat eBay’s purchase of Skype? But it doesn’t look like being great value, unless another business model emerges.
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