Yesterday Yahoo! revamped its Flickr terms and gave every member 1TB of photo and video storage for free. But the company also announced a new offering called Doublr, which gives users the option to upgrade up to 2TB of storage … for $499 a year.
How can Flickr offer 1TB of storage for free, and yet ask a whopping $499 per year for 2TB?
The reason is that storage when measured by the terabyte is expensive, and Yahoo knows that most Flickr users aren't going to get anywhere near to that limit.