There have been a few articles floating around talking about the fact that eBay is considering selling Skype. Although the talk is mostly related to new Skype CEO John Donahoe referring to “synergy” and weather or not the two business are complimentary. I think this might be cover for “profit”. The acquisition of Skype by eBay was a curve ball in most commentators eyes and there is no doubt that it has likely had a negative impact on Skype’s revenue and image.
That discussion made me think about what is it about Skype that is stopping it from being a giant (a bigger one). Number one in my book is the fact that most users don’t pay for any calls they make. They use it as a communication tool while online. They take advantage of Skype’s free calling, which is great. But there is no profit to be made from free. This is despite the fact that paid calls are cheap and deals like “Skype Pro” were top value for money. Indeed the new “flat rate unlimited calling” is also feature rich and again cheap. So if the majority of users are not taking them up on these great offers what can they do?
Charge for the use of Skype. That’s right charge for it, make Skype a subscription service on a per year basis. Before you go screaming your butt off hear me out. If you are screaming you must use and value Skype, I hear you. Skype is one application that I could not live without.
One of the strengths of Skype is the user base, it is massive. Used by an estimated 30% of all internet users and accounting for 95% of all VoIP traffic. Watching the total users online I see a constant + 10 million. There are questions about “active” users on Skype, given that total registered users is reportedly over 100 million but that is what I see on a regular basis so lets use that in our math.
With this huge user base Skype is in a great position to use that market share and economy of scale to charge a minimal subscription fee and make a very large profit. Consider this:
Skype have 10 million active users. Charge $10 per year for the use of Skype free calling PC to PC, therefore outside of SkypeOut. Given the fact that some people won’t pay this and ditch Skype lets be conservative and say that they lose 50% of current users. Now we have 5 million users paying 10 dollars a year. That is 50 million dollars a year! That is profit that they just don’t have coming in right now that could make Skype a whole lot better. Skype’s revenue is currently running around 500 million, subscriptions then would account for 10% of total revenue, that is a lot for any business.
I don’t think that they would lose 50% and I think that it will benefit users and Skype. I would pay 10 bucks a year. I might consider paying more. Why? I think that it is that good and I don’t have a problem paying for a quality service. I have used a number of VoIP services and none compare to the quality that I get from Skype, especially for recording. Generally speaking Skype is constantly reliable and stable, making it easy to use and dependable. Ten dollars a year is a very nominal fee for a great service.
In addition if I knew that the addition of a fee might make for a better Skype and encourage more development, great. They could even concentrate on working on some of my gripes:
- No record feature native to the software
- Bloatware like Skype Extras
- Creating a stripped down version for optimizing call quality
I know that many people will disagree with me and strongly. I may even get flammed for putting ideas in their head. But quite frankly I don’t want to loose Skype. I sure as hell don’t want to lose it to the likes of Microsoft or some other web company that will pollute it with rubbish… “Yahoo! toolbar will be installed with Skype” (in fine print at the bottom of the EULA). Skype should concentrate on being a VoIP service, not a games platform, not aan application client, not anything else.
I will say though that subscriptions without value adding to the application and development of more bloatware would be a disaster. But the opposite would make for Skype to develop and maintain a platform for which there is no equal. As long as they add that record button.
Would you pay 10 bucks for a killer app?
Top Blogs on WordPressOctober 11, 2006 — The Rooster
Many things attracted me to WordPress. Many things I discovered when I got here have kept me here. One of the things I discovered when I got here was the “Top WordPress.com Blogs of Today” that is displayed on the dashboard. It gave everyone the chance to be “featured”. I feel this is now a thing of the past.
The top blogs of the day feature is great and it used to be better. It used to be that anyone with a blog hosted on WordPress had the chance of being featured right there on the “homepage” when you logged into WordPress. I was excited about the fact that anyone could end up there and you did not have to be an “A-List” blogger. I am interested in what people have to say, especially that which is well written or of note. Now the list of the top four blogs on WordPress.com are usually VIP Blogs that are popular because of who they are.
[Note: Non WordPress.com readers can see the top blogs for today on WordPress here.]
Scoble and his blog Scobleizer has been hosted on WordPress for some time. When I joined it was always on the top, everyday. It doesn’t matter what he wrote it was on top. But, every now and then one of us not so well known bloggers piped Scoble off the top dog spot. These were the posts that really got me interested, mainly because it was because the content was worth looking at. It got my attention. So what has changed?
In late September WordPress started to off a new service for VIP bloggers. For $500 setup and $250 per month the WordPress team will set up a blog, maintain it and you get some nice VIP features. You become a VIP blog on WordPress. This is attractive for companies and “A-List bloggers” that make their income from blogging. They need a reliable service, with WordPress they get that. WordPress is a great service and offers great reliability and stability along with expertise that keep everything going and always rolling out new features. It can also handle the bandwidth required if a post ends up on Digg or Slashdot. So how does that affect me?
Now that we have VIP bloggers on WordPress like Anousheh Ansari’s “Space Blog”, Om Malik’s Web Worker Daily and more recently the Official Linden Blog, they are the Second Life people, they are always featured on the top blogs of the day. The sheer popularity and reach of these players now make the possibility of anything that I write have zero possibility of getting on the top blogs list.
I do not resent the fact that WordPress is inviting VIP’s to blog on WordPress, it makes very good business sense and I appreciate that it gives them exposure and respect within the blogosphere. But I don’t want to see a top blog list of bloggers that I could go to Techmeme and see! I want to see the “average Joe” have the opportunity to be listed as a “Top Blog”. I could not care if I never got on the list again, but I would like to think that there was always the opportunity that I could be. At this present time I have zero to none chances of making the cut. In addition this list should be dynamic and change all the time. At the moment it is like “Ground Hog Day”! Same blogs there day after day with no change, or very little. So what do I think should be done?
I think that the answer might be for the great guys at WordPress to make another list on the dashboard. Sure keep the “Top WordPress.com Blogs of today”, make that for everyone, who knows we might be able to get the traffic required to get on the list with the “A-listers”. Have another list that is formulated by taking out the “A-List” blog factor. That is; a list for the rest of us. At least then it would feel fair and not impossible to be a “Top WordPress.com Blog”.
How do other WordPress.com users feel about this idea? Is it something that you think you would appreciate? If so let the WordPress guys know and maybe we will see it. I do not think that it would be that hard to do. So how about it?