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TopicGmail hooked us on free storage. Now Google is making us pay
aki_sora
10/22/19 8:55:40 AM
#2:


Apple has been doing this for several years, building its iCloud storage service into a lucrative recurring revenue stream. When iPhone users get notifications that their devices are full and they should either delete photos and other files or pay more for cloud storage, people often choose the cloud option.

In May, Google unveiled Google One, a replacement for its Drive cloud storage service. Theres a free 15GB tier enough room for about 5,000 photos, depending on the resolution. Then it costs US$1.99 a month for 100GB and up from there. This includes several types of files previously stashed in Google Drive, plus Gmail emails and photos and videos. The company ended its Chromebook two-year 100GB free storage offer around the same time, while the Pixel free photo storage deal ended in October with the release of the Pixel 4.

Gmail, Drive and Google Photos have more than 1 billion users each. As the company whittles away free storage offers and prompts more people to pay, that creates a potentially huge new revenue stream for the company. If 10% of Gmail users sign up for the new US$1.99 a month Google One subscription, that would generate almost US$2.4bil (RM10.05bil) a year in annual, recurring sales for the company.

Adams, the Gmail user, is one of the people contributing to this growing Google business. US$1.99 (RM8.30) a month is a relatively small price to pay to avoid losing his main point of digital contact with the world.

"Its worked this long, Adams said. "I didnt want to bother changing the address
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