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ITP751 IBM – Prof. Hangjung Zo.

A Case Study: Photobucket

•A. Sanath,

•Pornprom

•Chol

•Riri K.

•M. Shakil
1
Content: Photobucket
1. A Brief Background & History & Performance

2. How Photobucket make money
3. Market Environment, Biz Model &

Competitive
4. Technologies

5. Recommendations
2
BACKGROUND

3
2003

2007

2009

2011

• Founded by Alex Welch & Darren Crystal,
Funding From Trinity Ventures

• Acquired by Fox Interactive Media

• Sold to Ontela (a Seattle mobile
imaging), rename to Photobucket Inc

• Cooperation with Twitter as default
photosharing platform

Office :
Technology Dev & Operation :
Denver
Business and Sales : Palo Alto,
California and Denver,
Colorado.
www.photobucket.com.

4
Photobucket
• Photobucket is an image hosting, video hosting,
slideshow creation and photo sharing website
• Capture Forever. Share Today.
– Premier destination for
• uploading, downloading, sharing, linking and finding
photos, videos and graphics.
• Host all images and videos for free, then share them by
email or on social sites like Facebook, Twitter and
MySpace.

– Free Photobucket account can store thousands of
photos and hours of video.
5
What Photobucket Offers

• Sharing of photos, videos, and albums by email,
instant messaging, and mobile phone
• Group albums
• A scrapbook builder
• A slideshow builder
• A remix builder
6
7
8
9
• Photobucket is the web's most popular creative hub, with close to
40 million users linking , billions of personal photos, graphics,
slideshows and videos daily to hundreds of thousands of web
sites
– MySpace, Facebook, Bebo, Friendster, eBay, Craigslist, Blogger and Xanga

• Photobucket users share their personal digital media by email,
instant messaging, and mobile devices.
• Everyday over 7 million personal photos, graphics and videos are
uploaded to Photobucket for sharing with family, friends and the
online world.
• The company actively moderates content to create a safe
environment for its users, partners and advertisers.

10
• Statistic on 2005 :
– 2.5 million registered users
– 17,500 new users per day
– 250 million images served per day
– 7 million pageviews per day
– 250 million images stored
(lots of terabytes)
– 1.3 million new images uploaded per day (30 per
second at peak)
– 500,000 sites using photobucket pictures
– 54% female and 46% male

11
http://www.quantcast.com/photobucket.com

12
http://www.quantcast.com/photobucket.com

13
14
• Main revenue streams are through premium accounts and advertising.
• The company spent 2006 enhancing their product with the addition of
some new slideshow and video editing tools in February of 2007.
• Year 2006, claiming 2% of US traffic by April of that year.
• The service took a total of $15 million in investment before being acquired
by MySpace for $250 million in May of 2007.
• Photobucket had not structured itself as a destination site, their main
channel of growth was through social networking sites like MySpace.
• Photobucket served 63% of all media links on the site. By contrast, Yahooowned Flickr accounted for about 8%.
• This dependence came into play in mid 2007 when MySpace supposedly
strong armed the company by shutting off the service on their site during
acquisition talks.
• Photobucket eventually sold for $250 million to Fox Interactive Media (FIM)
- the parent company for MySpace, which amounted to a price of about $13
per unique user, which was a steal compared to YouTube’s acquisition at
$67 per unique.
15
BUSINESS MODEL

16
• Freemium Business Model
– Free
• Unlimited total photo storage for non-commercial use,
with a limit of 1MB per photo
• dimension limit is 2048 x 1536 pixels
• upload up to 500 videos, each limited to 500MB and
10 minutes

– Premium
• limit 2MB per photo
• dimension limit 4000 x 3000 pixels
• download the original images they uploaded, up to
20MB

17
Basic Photobucket account: free of charge
• One gigabyte (GB) of storage space
• The ability to upload videos of up to 5 minutes in
length
• 25 GB of bandwidth each month
• Access to Adobe Premiere Express for Web-based
photo editing
• The option to create a personal avatar called a Meez

18
Extra Photobucket account
• Options to transfer digital images to physical products
(which you must purchase)
• For $39.95 per year, users can upgrade to a
Pro account.
• Pro accounts have all the features of a basic account
as well as:
–
–
–
–
–
–
–
–

10 GB of storage space
The ability to upload 10-minute long videos
Unmetered (but not necessarily unlimited) bandwidth
File transfer protocol (FTP) upload access
The option to upload high resolution images
Support for Flash files (.swf files)
A 10 percent discount on items from the Photobucket store
Premium technical support
19
How Photobucket make money
• Photobucket's advertising options are diverse:
– Advertisers can buy traditional ad space on Photobucket.
– This includes common Internet ad formats such as banner ads.

http://photobucket.com/about/advertise-with-us

20
How Photobucket make money
• Photobucket partners with major advertisers by altering the
appearance of the Photobucket homepage.
• For the right price
– an advertiser can alter the colors on the homepage, incorporate custom
animation, and even tweak the navigation bar and include branded videos.

• With custom slideshows
– advertisers can embed their branding directly into the user experience on the
Web site. When users view a slideshow, they'll see the advertiser's message
within the borders of the slideshow view itself.
– advertisers can insert their ads into the image editor or the Photobucket Remix
tool, which is an online video editor. Ads appear along the inner border of the
editor window.

• Photobucket also allows advertisers to host contests on
Photobucket's site. Whether it's a photography contest or a
video editing competition, advertisers can create interactive
events that market their respective brands using Photobucket as
a platform.
21
COMPETITORS

22
http://siteanalytics.compete.com/photobucket.com/
23
Competitors

24
http://www.compete.com/us/
25
http://www.google.com/trends/
26
TECHNOLOGY

27
Technologies

28
29
• Support the following O.S
–
–
–
–
–

Windows XP
Windows Vista
Windows 7
Mac 10.6 +
Others may experience problems
when uploading

• Support the following web
browsers
–
–
–
–

Chrome
Firefox 3.6 or later
Safari 5.0 or later
Internet Explorer 8.0+
30
• supports the following image file formats:
–
–
–
–

Graphics interchange format (.gif)
Joint Photographic Experts Group files (.jpg)
Portable network graphics files (.png)
Bitmap files (.bmp)

Photobucket supports more than a
dozen different video file formats.
It converts all video into Flash
Video format.

31
RECOMMENDATIONS

32
Recommendations
• Photobucket must enhance their
infrastructure and quality of service to
compete with the competitors
• Photobucket may use redundant service
for photo upload to save memory and
easy access
• New services like photo matching, image
recognition and searching etc.
33
34
Team 3

Thank you for your participation
•A. Sanath,

•Pornprom

•Chol

•Riri K.

•M. Shakil
35

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20121007 team 3 photobucket - itp751 ibm v2

  • 1. ITP751 IBM – Prof. Hangjung Zo. A Case Study: Photobucket •A. Sanath, •Pornprom •Chol •Riri K. •M. Shakil 1
  • 2. Content: Photobucket 1. A Brief Background & History & Performance 2. How Photobucket make money 3. Market Environment, Biz Model & Competitive 4. Technologies 5. Recommendations 2
  • 4. 2003 2007 2009 2011 • Founded by Alex Welch & Darren Crystal, Funding From Trinity Ventures • Acquired by Fox Interactive Media • Sold to Ontela (a Seattle mobile imaging), rename to Photobucket Inc • Cooperation with Twitter as default photosharing platform Office : Technology Dev & Operation : Denver Business and Sales : Palo Alto, California and Denver, Colorado. www.photobucket.com. 4
  • 5. Photobucket • Photobucket is an image hosting, video hosting, slideshow creation and photo sharing website • Capture Forever. Share Today. – Premier destination for • uploading, downloading, sharing, linking and finding photos, videos and graphics. • Host all images and videos for free, then share them by email or on social sites like Facebook, Twitter and MySpace. – Free Photobucket account can store thousands of photos and hours of video. 5
  • 6. What Photobucket Offers • Sharing of photos, videos, and albums by email, instant messaging, and mobile phone • Group albums • A scrapbook builder • A slideshow builder • A remix builder 6
  • 7. 7
  • 8. 8
  • 9. 9
  • 10. • Photobucket is the web's most popular creative hub, with close to 40 million users linking , billions of personal photos, graphics, slideshows and videos daily to hundreds of thousands of web sites – MySpace, Facebook, Bebo, Friendster, eBay, Craigslist, Blogger and Xanga • Photobucket users share their personal digital media by email, instant messaging, and mobile devices. • Everyday over 7 million personal photos, graphics and videos are uploaded to Photobucket for sharing with family, friends and the online world. • The company actively moderates content to create a safe environment for its users, partners and advertisers. 10
  • 11. • Statistic on 2005 : – 2.5 million registered users – 17,500 new users per day – 250 million images served per day – 7 million pageviews per day – 250 million images stored (lots of terabytes) – 1.3 million new images uploaded per day (30 per second at peak) – 500,000 sites using photobucket pictures – 54% female and 46% male 11
  • 14. 14
  • 15. • Main revenue streams are through premium accounts and advertising. • The company spent 2006 enhancing their product with the addition of some new slideshow and video editing tools in February of 2007. • Year 2006, claiming 2% of US traffic by April of that year. • The service took a total of $15 million in investment before being acquired by MySpace for $250 million in May of 2007. • Photobucket had not structured itself as a destination site, their main channel of growth was through social networking sites like MySpace. • Photobucket served 63% of all media links on the site. By contrast, Yahooowned Flickr accounted for about 8%. • This dependence came into play in mid 2007 when MySpace supposedly strong armed the company by shutting off the service on their site during acquisition talks. • Photobucket eventually sold for $250 million to Fox Interactive Media (FIM) - the parent company for MySpace, which amounted to a price of about $13 per unique user, which was a steal compared to YouTube’s acquisition at $67 per unique. 15
  • 17. • Freemium Business Model – Free • Unlimited total photo storage for non-commercial use, with a limit of 1MB per photo • dimension limit is 2048 x 1536 pixels • upload up to 500 videos, each limited to 500MB and 10 minutes – Premium • limit 2MB per photo • dimension limit 4000 x 3000 pixels • download the original images they uploaded, up to 20MB 17
  • 18. Basic Photobucket account: free of charge • One gigabyte (GB) of storage space • The ability to upload videos of up to 5 minutes in length • 25 GB of bandwidth each month • Access to Adobe Premiere Express for Web-based photo editing • The option to create a personal avatar called a Meez 18
  • 19. Extra Photobucket account • Options to transfer digital images to physical products (which you must purchase) • For $39.95 per year, users can upgrade to a Pro account. • Pro accounts have all the features of a basic account as well as: – – – – – – – – 10 GB of storage space The ability to upload 10-minute long videos Unmetered (but not necessarily unlimited) bandwidth File transfer protocol (FTP) upload access The option to upload high resolution images Support for Flash files (.swf files) A 10 percent discount on items from the Photobucket store Premium technical support 19
  • 20. How Photobucket make money • Photobucket's advertising options are diverse: – Advertisers can buy traditional ad space on Photobucket. – This includes common Internet ad formats such as banner ads. http://photobucket.com/about/advertise-with-us 20
  • 21. How Photobucket make money • Photobucket partners with major advertisers by altering the appearance of the Photobucket homepage. • For the right price – an advertiser can alter the colors on the homepage, incorporate custom animation, and even tweak the navigation bar and include branded videos. • With custom slideshows – advertisers can embed their branding directly into the user experience on the Web site. When users view a slideshow, they'll see the advertiser's message within the borders of the slideshow view itself. – advertisers can insert their ads into the image editor or the Photobucket Remix tool, which is an online video editor. Ads appear along the inner border of the editor window. • Photobucket also allows advertisers to host contests on Photobucket's site. Whether it's a photography contest or a video editing competition, advertisers can create interactive events that market their respective brands using Photobucket as a platform. 21
  • 29. 29
  • 30. • Support the following O.S – – – – – Windows XP Windows Vista Windows 7 Mac 10.6 + Others may experience problems when uploading • Support the following web browsers – – – – Chrome Firefox 3.6 or later Safari 5.0 or later Internet Explorer 8.0+ 30
  • 31. • supports the following image file formats: – – – – Graphics interchange format (.gif) Joint Photographic Experts Group files (.jpg) Portable network graphics files (.png) Bitmap files (.bmp) Photobucket supports more than a dozen different video file formats. It converts all video into Flash Video format. 31
  • 33. Recommendations • Photobucket must enhance their infrastructure and quality of service to compete with the competitors • Photobucket may use redundant service for photo upload to save memory and easy access • New services like photo matching, image recognition and searching etc. 33
  • 34. 34
  • 35. Team 3 Thank you for your participation •A. Sanath, •Pornprom •Chol •Riri K. •M. Shakil 35