Earlier quoted context omitted.
The site will simply not operate with large margins like other sites. The cost of keeping the servers and development running will be covered by a premium plan that's targeted to heavy users.
Isn't storing and serving terabytes of stuff pretty expensive? How many heavy users do you think you'll manage to win over in the first place, much less convince them to pay for the privilege of uploading their 100GB of illicit car diagnostic software to your website? Do you have an actual niche you plan to target? I don't mean to be negative, it's just that I've seen the transition from free to freemium to ad-suppor…
Rapidshare was a service that had to swiftly and reluctantly change their business model. They were operating out of large offices with over 60 employees and due to the change they saw a sudden drstic drop in revenue.
Rapidshare's financial information isn't public since it's a private company, but one could argue whether they were actually losing money or not making the profits that they expected at the time of the shutdown.