Advertising-Supported to Fee-for-Services Model
• Xdrive Technologies: offered free disk storage
• Initial revenue source (1999): advertising-supported
– Targeted e-mail advertising
–Did not cover operating costs
• 2005: bought by AOL
–Switched to a subscription-supportedmodel
– Xdrive frequently adjusted its monthly fee downward
–AOL closed the service in 2009 –AOL closed the service in 2009
• Successful companies: fee based on storage amount used