Photo-hosting service Photobucket in May quietly restored third-party hosting of photos, reversing its unpopular year-old policy that required users to pay nearly US$400 in subscription fees for hosting privileges.
Many irate users had reacted to the policy by claiming their photos were "taken hostage." Hosted photos on blogs, forums and other sites were replaced by an image of a dial indicating the hosted data quota had been surpassed.
Users were not given advance notice. Instead the company sent out emails with the message, "Some features on your account will be disabled. Your account has been restricted for excessive usage and 3rd party hosting."
Photobucket then encouraged users who previously had relied on the service for hosting to upgrade to a Plus500 Membership Plan, which cost $399 per year.
At the time, then-CEO John Corpus admitted that it was not an easy decision to make, and that he knew many people would be unhappy with the change in policy.
However, the ad-based model wasn't working, and the company was losing money, Corpus suggested.
Ted Leonard, who joined the company last fall as its finance officer last fall, took the reins as CEO in March and had the images turned back on in May. The reversal, which took place with little fanfare, was viewed as an attempt to correct what was regarded as a business debacle.
Under the new policy, the company will offer free photo-sharing and ad-supported storage only, but no free third-party hosting. A basic plan includes 2 GB of photo-sharing with ad-free hosting for $2.49 per month. Users needing more storage can upgrade to an intermediate 20-GB plan for $3.99 per month, or an expert plan offering 2 TB of photo storage for $8.99 per month.
Regardless of the subscription plan chosen, the fees for third-party hosting are a lot less than the $399 price tag of a year ago.