I was looking into Amazon but I think we might go with a Virtual Dedicated Server via Go Daddy, 30gb of storage and up to 1,000gb of bw for under $40.
Very interested on how the virtual dedicated server(VPS) works out for you. Please keep us updated on how the server handles the load. Even with Amazon S3 low pricing below, I have a few looking for a cheaper solution.
I'll look into DB again. I'm curious how DropBox, as they state use AmazonS3 servers for storage, offers 250gb daily bandwidth on a paid account for $9.99/month. Only possible show stopper is: Streaming videos are cropped at five minutes.
Amazon S3 pricing:
Storage: First 1 TB / month $0.140 per GB
Transfer: Up to 10 TB / month $0.120 per GB
Upon sign-up, new AWS customers receive 5 GB of Amazon S3 storage, 20,000 Get Requests, 2,000 Put Requests, and 15GB of data transfer out each month for one year.