Image Hosting Website?

[SN3]

EDIT: Nevermind

I'm thinking of creating a website that offers free & paid image hosting. There would a free plan and a few paid plans that allow you host images only. The free images would have a watermark or something (of the name of the site), and would allow a certain number of pictures (a certain amount of space). The paid ones would have much more space and wouldn't have a watermark. There would be a user control panel where the user would be able to upload, delete, link and manage the images. Once the image is uploaded it would show code for putting the image in phpBB, bulletin, HTML, etc (I would have to work on the coding...I might need some help). There would be some sort of ads on the page (maybe adsense or something that would earn a fair amount of money with non-obtrusive ads) that would help generate revenue. Does anyone know if there is a potential market for this type of stuff?

I'm not really sure if this would take off or not, I think it might be too late to start an image hosting business.

Thanks in advance.