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I would like to create a live blog with my blog. I realize that Automattic have recently created a plugin to do this, but this is only for VIP members and I don't have the space $10,000 lying around to do this.

I could go self-hosted, but I'm just getting started with the blog so I want to keep it as cheap to maintain as possible. Is there any way that I can live blog using my blog?

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You can't install plugins on a hosted WordPress site, neither can you run arbitrary JavaScript code. With these restrictions, there's no way that you can live blog on your hosted blog

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