Were their costs that high? You might want to see what sort of deal they had with ServerBeach back in the day. Considering that SB didn't even have bandwidth monitoring, never mind billing, at some point, how bad could it have been?
If they were doing it today, there's no way they'd ever find an unmetered pipe to the outside world. People know that video over the web is feasible now, and that means bandwidth is treated differently.