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207 - Read. Write. Own. | Chris Dixon
Bankless
The Power of Subsidizing Hosting
YouTube's compelling value proposition of subsidizing hosting costs attracted users by offering to pay for hosting and embed the content code, which appealed to bloggers who found video hosting to be expensive and time-consuming. This strategy of subsidizing hosting costs has been employed by other successful social networks like Twitter and Facebook, which raised significant funding before going public.
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