[NoFile]

A few years ago bandwidth and storage was much more expensive than it is today.

Rapidshare was a service that had to swiftly and reluctantly change their business model. They were operating out of large offices with over 60 employees and due to the change they saw a sudden drstic drop in revenue.

Rapidshare's financial information isn't public since it's a private company, but one could argue whether they were actually losing money or not making the profits that they expected at the time of the shutdown.

[gressquel]

I think Rapidshare earned tons of money. At one time RS was the go-to filehost for pirated material. They had almost anything you wanted, and they seldom removed files.

Then came the FBI raid against various filehosts. I remember few of the other hosts got taken down and charged, while others shut their site down as precaution. I remember Rapidshare starting their decline during this phase, something tells me Rapidshare did it on purpose and 'ran away' with the earned money before the feds got them.

Well thats my theory :)

[redm]

This is a misnomer, as bandwidth gets cheaper, file sizes get larger due to technological advance. Think about the average size of a photo from 2006 and from 2016.