Free Storage Keeps Online Providers Running

Blazing digital camera sales and unlimited free storage are forcing online image storage providers to keep up with demand. Many email providers cap the storage capacity and size of image attachments, so many users turn to free storage from companies like Fotango to share and store their pictures. Here's proof that online storage is hot: Ofoto, owned by Kodak, has over 13 million members and 450 million images stored, according to a Reuters report. The company adds 5TB of memory each week to meet the demand for storage space. How do the companies afford to offer free storage? According to a Reuters report, printing fees and gifts more than make up for the free storage the companies offer. The companies pay less than a penny to store one picture for a lifetime, so prints, which cost about $.41 each, cover the cost of storage

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