Thanks to Ben, who pointed out that Divvyshot is a service, currently in alpha that offers a lot of the features I was looking for in yesterday’s post. I’ve asked for invite and will report back after I get in. Oddly enough, I was at the YC Demo Day when the team presented, but I completely forgot. In the mean time, I’ve started to use DropBox.
Here’s a sneak peek of the service. And TechCrunch’s coverage.
Business model in question
Jeff had a great point as well about the lack of a revenue model for these kinds of businesses. Storage costs for high resolution images aren’t cheap. Taking a look at comparables, companies like Shutterfly (SFLY) are able to generate about $250M+ in revenues, with 13% EBITDA margins, from selling prints, books and other supplies based on photos.
MobileMe is rumored to have about 2M subscribers paying $100/yr generating about $200M annually for Apple.
For every example of a photo sharing site that generates revenue, you have several that don’t. But by providing a service that users want, and training them at the outset that there’s a price point for storage, even if it’s an upsell for more storage, it is possible to build a big business.