Skype has had a bit of a Renaissance of late. First it sorted video out and suddenly grandmothers the world over could see their grandchildren in all their pixelated glory. Now mobile network 3 has announced it will no longer be charging for Skype calls made over its network. No charge for the call (as it’s always been) but no charge for the data usage either. Bold, brave moves both, particularly when you consider the cost to the user is zero. Zip. Gratis. Complementary.
Unsustainable, surely?
Skype is no stranger to danger on the financial front. Its owner ebay is currently trying to offload it with reports last week emerging that it’s planning an IPO for some time next year. This will leave ebay to escape with an anticipated loss of $1.6 billion, as the company is expected to make up to $1 billion from the IPO (ebay paid $2.6 billion for Skype back in 2005). Last year Skype realised sales of $551 million – that’s a little over $1 per user, per year. Hardly a business model, particularly when you compare it to your average mobile network.
But that makes me wonder. What is the business model for Skype? Like Twitter, it’s currently floating along, grateful to its masters for keeping it fed. One day soon (and it might come sooner than we think, particularly in the current climate) these businesses will have to fend for themselves. No longer will the love be lathered on them in the form of endless rounds of funding, instead they’ll be forced, like the rest of us, to fend for ourselves in the big bad world.
Will everything still be free then?