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The cost of running the site seems like a red herring. Reddit is proof that there's no technical reason why a community news site can't be run on a fraction of the cost of Digg.

The real lead here is that Digg is ceding that market entirely to Reddit. The new Digg looks more like a competitor to the Huffington Post. To be honest, I think there might just be a business there. Huffpo serves a particular market niche: predominately liberal female city dwellers and it strikes me that it may be profitable to deliver the same product to a different niche.



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