NYT: Free Rides Now Passé on Information Highway
"Ed Bernstein, chief executive of PhotoPoint, said he had no choice. "The entire industry will have to move to a paid model or go away," he said. When the company raised $11 million from the likes of Intel, it predicted that half its revenue would come from advertising. It now calculates that it will be lucky if ads represent 10 percent of revenue. [...] Its costs, meanwhile, have been higher than anticipated. Sure, it costs only a few pennies a year to store a picture. But with 35 million pictures taking up 10 terabytes of disk space, those pennies add up."