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Re:Reddit launches image uploads, ditching alliance with Imgur by adventured on Thursday May 26, 2016 @02:50AM (#11776098)
One of the earlier Imgur style hosts, ImageVenue, did this very successfully (they were extremely large in terms of traffic at their peak and for the time, until better options came along).

The founder, Vlad, used to rent out cheap dedicated boxes with about 500gb of bandwidth per box for $60 to $80 per month. He'd cycle upload machines - eg 123.imagevenue.com - and fill up the drives on them until no more space was available; when bandwidth was exhausted, that was that for the month. Typically image file downloads would decline on any given upload over time, so machine resources would free back up in terms of bandwidth and deleting images that weren't viewed after N amount of time.

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