Webshots and the Facebook have a rather symbiotic relationship. The core audience of the Facebook has historically used Webshots to post all of their party pictures. Webshots allows free hosting of 240 pictures per free user. However, most people are smart enough to realize that they can sign up as many free users as they like or if they really care, sign up for a premium membership to get storage for 3000 photos. The problem is that the Facebook just announced free unlimited photo hosting for their users. This removes any impetous for their users to go to Webshots and manage a half dozen free users. I’m curious to see how Webshots responds.