[WhitneyLand]

>Prices do go down, but consumption goes up in a faster pace

Not true. It varies based on what's in vogue on the content side, quality requirements, and the state of technology at a given moment in time.

As one point of reference, Flickr posted an analysis here recently that discussed how their architecture has evolved over time based on variable ratios of usage requirements and hardware costs.

[shacharz]

I can't speak to Flickr's use-case specifically, but generally speaking the content delivery market is growing.