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How is Usenet profitable for a company like Usenetserver.com?

post #1 of 10
Thread Starter 
I have seriously been wondering about how the heck they make money to afford the servers and terabytes of data that are transferred through them daily.

*before reading on, this is purely a question about how the service works, not what it's used for and piracy, etc.*

I have been looking around and found a company charging $10 a month for unlimited downloads through their service. How is it that they are profitable if someone was to pay $10 a month, experience 0 ads through their website as they would never need to access it (the website doesn't have ads anyway), and if they take advantage of the UNLIMITED part of the plan, how would the company make money at all?

Really, I don't see how $10 a month would work with a user who downloads a ton of data per month, very quickly. It seems like that wouldn't cover costs, and AFAIK Usenet is a fairly dead service, at least to my knowledge.
post #2 of 10
Just a guess, but probably works on the same theory as Gym Membership.

Not very profitable if every customer is Mr Hercules Body Builder and using up the Gyms resources 24/7. But what tends to be the case is that just about everyone and their father *think* they will emulate Mr Hercules Body Builder, so they sign up, and then end up going once a month... if that.
post #3 of 10
Some people also buy the higher plan, thinking they'll use it all, and never actually come close
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post #4 of 10
If you think usenet is fairly dead service, you've been very misled. There are hundreds of thousands of people using usenet, all of which pay one of these companys anywhere from 10 to 30 dollars per month. Surely you can then realize that this in turn, is thousands and thousands of dollars a month for the company, most of which also provide separate services like VPN's. You have to realize that usenet has been around very close to when the internet was created so it quite a broad audience.
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post #5 of 10
Thread Starter 
Quote:
Originally Posted by Twilex View Post

If you think usenet is fairly dead service, you've been very misled. There are hundreds of thousands of people using usenet, all of which pay one of these companys anywhere from 10 to 30 dollars per month. Surely you can then realize that this in turn, is thousands and thousands of dollars a month for the company, most of which also provide separate services like VPN's. You have to realize that usenet has been around very close to when the internet was created so it quite a broad audience.

Almost everyone I talk to about any kind of IT, even network admins for large groups and management IT's I know choose torrents or direct download websites. It just seems like those who are willing to pay for a downloading service is fairly small. Thanks for the info.
post #6 of 10
Quote:
Originally Posted by driftkidd2323 View Post

Almost everyone I talk to about any kind of IT, even network admins for large groups and management IT's I know choose torrents or direct download websites. It just seems like those who are willing to pay for a downloading service is fairly small. Thanks for the info.

Well it might seem fairly small to you only because you don't know anyone that actually uses it heh. I for one can tell you that its amazing and I never go back to torrents unless theres something I honestly can't find. Being able to cap out my 20mbit line for 12 hours at a time through a 256bit ssl connection, is much more appealing to me than torrenting thumb.gif

But everyone has their own entitlements redface.gif
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post #7 of 10
Thread Starter 
Quote:
Originally Posted by Twilex View Post

Quote:
Originally Posted by driftkidd2323 View Post

Almost everyone I talk to about any kind of IT, even network admins for large groups and management IT's I know choose torrents or direct download websites. It just seems like those who are willing to pay for a downloading service is fairly small. Thanks for the info.

Well it might seem fairly small to you only because you don't know anyone that actually uses it heh. I for one can tell you that its amazing and I never go back to torrents unless theres something I honestly can't find. Being able to cap out my 20mbit line for 12 hours at a time through a 256bit ssl connection, is much more appealing to me than torrenting thumb.gif

But everyone has their own entitlements redface.gif

That's my argument. I can utilize my 50mbit from Comcast at full speed and get ridiculous amounts of data through an encrypted tunnel and pay $10 a month, on top of that my account is split with two other people. My connection maxes out with 15 connections, and I get my files quick so it works out well biggrin.gif thanks for the help.
post #8 of 10
166

That is the cost to colocate a 1-4 U server. A 4U server can hold terrabytes upon terrabytes of data, and data transfer is a simple web transaction. This is unmetered on 100 Mbit connection x2 connections. Total cost is $105 a month. A usenet service would only need 11 users to start turning a profit per server. That's really not a lot, and not all users are constantly downloading. Some have a lot in queue, but aren't constantly downloading. Even with scripts like couch potato and sabnza, you can't download all day.
post #9 of 10
I love USENET service. I have GIGANEWS account which in unlimited data. The speeds, secure SSL VPN is great. I download @ 3.5megebytes a second at home (FiOS 30/30).
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post #10 of 10
Thread Starter 
Quote:
Originally Posted by herkalurk View Post

166

That is the cost to colocate a 1-4 U server. A 4U server can hold terrabytes upon terrabytes of data, and data transfer is a simple web transaction. This is unmetered on 100 Mbit connection x2 connections. Total cost is $105 a month. A usenet service would only need 11 users to start turning a profit per server. That's really not a lot, and not all users are constantly downloading. Some have a lot in queue, but aren't constantly downloading. Even with scripts like couch potato and sabnza, you can't download all day.

you sir, just gave the perfect response. +1000 rep if i could.
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