Hosting images on the internet isn’t free, and bandwidth costs are the primary reason dedicated image hosts have died off over the years. Obviously Imgur does not like losing a large chunk of traffic, but there’s a possibility that this outcome will be better for the business than what’s implied from the charts above. And these trends do not appear to be slowing down. The growth rate after the beta release is flat for both services, but when Reddit image hosting becomes sitewide, the market shares of Reddit-hosted/Imgur images increase/decrease linearly over time once users officially learn that the native image upload functionality exists. Here, the impact of the two rollouts is much noticeable, with immediate increases in Reddit-hosted image market share after each rollout, and proportional decreases in Imgur market share.
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