"Man, all the image hosts suck ass and get in the way of me just seeing the damned image. I'm gonna create a new one, without all the cruft!"
"This image host is going well, but the bills are killing me. We'll have to add ads, but obviously only where they're unobtrusive."
"We're still bleeding cash, but we've got a huge userbase. We need to monetize it better. We'll toss in a couple interstitials to drive up ARPU."
"Man, all the image hosts suck ass and get in the way of me just seeing the damned image. I'm gonna create a new one, without all the cruft!"
I like their moderation log though, that's a good step.
Because of that a lot of relatively benign Trump content gets censored on imgur because a lot of people find even his name to be offensive. Some even think his name is violence.
http://www.thedailybeast.com/articles/2016/03/24/emory-unive...
Here's the AMA
https://reddit.com/r/The_Donald/comments/4erynj/we_are_slimg...
https://sli.mg/lrrDOF #testt
5 years ago: "but it's profitable enough to hopefully hire another guy or two this summer."[0]
The founder has completely bootstrapped the site since day 1, and has done an AMA on Reddit talking about the whole situation[1]. Ads are absolutely necessary to make it profitable, but clearly taking investment now means they are going to squeeze every ounce of dollar out of the site and hence the sentiment of "aggressive monetization".
[0] - https://www.reddit.com/r/IAmA/comments/eicjf/im_the_imgur_gu...
Point being: unless you have been directly involved in the decisions accusing them of either malevolence or greed is a pretty tough accusation to make. Sometimes (usually) it's cold hard business realities that drive people to adopting these sorts of monetization strategies.
So now the cycle will repeat. Someone will start a host that simply serves images. People will use it. They'll add some ads, people won't care much. They'll start serving more aggressive ads and someone will start another host... over and over again.
How? I don't see a way from Imgur to monetize on sharing images directly.
If I can see you viewed an image referred from /r/woodwork I might offer you some woodworking tools and drive up the conversation rate of my advertisements.
It is. The wealth of images alone, the sheer amount, from memes to vacation pics is worth so much now that image recognition is taking off.
They did it by building a community around the non-reddit related traffic. Basically redditor's would share imgur links outside the reddit ecosystem (Facebook etc), then other people would visit imgur directly instead of going through reddit. These secondary users are monetizable.
Imgur had to eat the costs of supporting reddit's hotlinking (though not all reddit posts are hotlinked) but that was more or less imgur's "marketing budget."
Supermarkets wouldn't allow, much less encourage, anyone to consume large numbers of free samples instead of buying the actual for-sale product.
Then why did they start a free service to begin with, if they knew from the start it couldn't last?
Right, to trick people into becoming dependent on the free service so they'll be reluctant to leave once the shady, UX-degrading monetization starts.
You'll forgive me if I'm not sympathetic to that business plan.
Nobody has to make a website. If the only way you can think of to make money is bait-and-switch, then you can choose to do that, or you can choose to go back to the drawing board and come up with a less unpleasant business plan. If you choose the former, don't expect me to cheer because you found a way to make money, and you think that's the only thing that matters.
Also, I don't think you're going to make everyone happy as a business, and that's (probably) okay.
While we're at it, let's demand the end of free TV, free email providers, free forums, and even youtube.
If you have a sustainable business model for such a thing, knock yourself out.
If you're just making it free for a couple of years to suck people in before you ratchet up the (not necessarily monetary) cost then yeah, we can do without that.
It's an image hosting service.
You upload cat pictures, you pass the link around. That's it.
Once the hosting service stops being a hosting service, you move on and upload the picture somewhere else.
For example, they may have hoped or believed they could find a better business model over time, an alternative to the traditional ad models. Based on watching their various experiments since the day they got started, I can say for a fact they did try other things (two examples: Imgur as a service via paid API and Imgur Pro accounts).
Is it more likely the Imgur founder was naive or malevolent? The answer is extremely obvious.
I can be sympathetic to the fact that their previous 'business model' wasn't financially viable while still being annoyed that they've changed it.