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Photobucket: the largest site you didn't know about

Among the largest Internet sites there are some that very rarely fall on the pages of media, but at the same time occupy a leading position in their niches, serving a multimillion army of grateful users. One of the “dark horses” is the Photobucket service for photo and video hosting with 36 million registered users and a monthly audience twice as large as Flickr. Created in 2003, now this startup is preparing for sale. In this regard, for the first time in its history, Photobucket hit the pages of big media: Fortune magazine devoted a large article to it.

Photobucket provides a simple but important service: storing multimedia files with the ability to convert to any format. Tens of millions of people post their photos here, linking to them in their blog. The business model of Photobucket is based on link generation. Here, people do not so much store photo albums, as they turn to quickly get a link to their picture, to publish this link on the forum or somewhere else.

To date, more than 300 thousand sites link to Photobucket. For example, in the largest social network MySpace, about 63% of all media links lead precisely to Photobucket, whereas on Flickr and YouTube, only 8% and 1.38%. By the way, this is one of the potential weaknesses of Photobucket, because if MySpace denies such links, the traffic will drop very much.

Every day, 85,000 people register on the Photobucket website. If this goes on, by the end of the year, the audience will grow to 60 million users. A year ago, it became possible to store on a hosting not only photos, but also video files (lasting up to 10 minutes at a paid rate), and now the number of downloads has reached 40-45 thousand videos per day.
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The monthly audience (17 million) is larger than that of Facebook and twice as large as that of Flickr. A hosting service a year ago generated 2% of all traffic on the American Internet. Over the year, the number of accounts increased from 14 million to 36 million, and the daily outgoing traffic reached 2.5 billion photos.

Sources of income Photobucket - advertising and premium accounts for $ 25 per year. Owners of paid accounts receive not one, but three gigabytes of disk space, as well as a number of other benefits.

The startup has been almost four years old, but only recently it has become a profit. In 2005, the site earned $ 4.35 million, in 2006 - $ 9.34 million, and in 2007 it is planned $ 32 million. Last year, advertising accounted for 68% of revenues, and this year its share should grow to 79%.



They say the startup has not yet squandered a significant portion of venture capital investments ($ 8 million out of the $ 15 million received), which it stores in the bank. Fortune financiers are wondering: how much does Photobucket cost? Independent auditors from Lehman Brothers call the amount of $ 300-400 million (this is the minimum estimate). According to insider information, a number of potential buyers are ready to purchase Photobucket at this price.

via Fortune

Source: https://habr.com/ru/post/6024/


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