But you need to consider that so have hosting costs-- proportionately too. Hosting data was incredibly expensive 10 years ago. If the math was working then, it should at least be pretty close to working now.
For some segments that's true. Image hosting wasn't incredibly expensive 10 years ago. It was very much on the lighter side in cost compared to MegaUpload or YouTube type services.
Image file sizes increasing dramatically as smartphones started producing photo sizes that would have been considered massive 15 years ago, saturated much of the gains in cost to hardware.
It's easier to run a one-click image host (like the early Imgur) as a solo operator today versus back then. It's not much cheaper when you account for the larger image files (unless you severely limit the file size, which won't be a popular choice with users, most of which just blast four billion smartphone photos, don't think much about image sizes, and want to upload them as is without thinking about any of that).
Bandwidth is a heck of a lot cheaper these days (I remember a previous employer paying $10k/mo for a 100MB circuit in San Francisco 10ish years ago). That said while the prices are much lower, people are realizing that not all bandwidth is created equal, e.g to get good connectivity to some regions can still be ludicrously expensive, for example if you want to deliver to Singapore, Australia, etc, or say you wait to get content from the USA to South America with reasonable reliability and low latency.
