I think he’s just confirming what we all suspected a long time ago.
Ok, look. To run a site and not lose money is simple. Instead of trying to start out all flash harry and taking it for granted that everybody is going to come to you instantly, start with 1 server and run everything off that. Then if it picks up, slowly add more servers and share the load.
These guys try and build an empire overnight, and it NEVER happens.
I remember one of my old sites, the football one, i was buzzing when i had 12 people watching lol, all on 1 cheap crappy server.
Within 18 months i was running 4 dedicated servers just for the video, with an average 10,000 viewers throughout the day.
No buffering, no freezing, no crashes and more importantly, no money lost 🙂
Moral of the story, you don’t need cash to run a successful website, it should pay for itself, if it doesn’t, you’re going about it all wrong.