[tonyblundell]

But surely they don't make $49 per user per year on ads? It looks like they're over-charging on the paid accounts to cover the costs of the free accounts. Especially the 1TB is free, 2TB is $500 deal.

And it seems that after proving people will happily pay for premium features, they've now sent an email to all their customers which essentially says unless you have over 1TB of photos with us (which is pretty-much no-one), you may as well cancel and use the free account instead.

It seems like a very bizarre structure to me and I can't see people subscribing to it which is a shame as IMHO they've just vastly improved what was already by far the best product in its market.

I Hope I'm wrong.