Data costs threaten social networking sites

Recently I wrote about the closure of free video-hosting services at both AOL and Brightcove. I suggested that no free hosting service can be relied on to be around forever, or even a year from now in the current economic crisis.

Today the Daily Telegraph reports that social networking sites, such as Facebook, face a ‘data cost crisis’, as advertising revenue declines from a position that wasn’t exactly lucrative in the first place.

Research by the consultants Deloitte suggests that the cost of storing electronic data ‘has soared to more than $100m (£68m) a year for larger sites, as users increasingly want to upload memory-hungry photos and videos’.

 

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