By Sree Sreenivasan
DNAinfo Contributing Editor
I had not been paying attention to Skype in a while. Between Gmail's easy to use audio and video chat tools (including free phone calls in U.S. and Canada through 2011) and Facebook and Twitter and, yes, even e-mail, I have so many ways to communicate with friends and family that I hadn't even logged onto my Skype account in months.
But starting last fall, I was getting multiple requests from teachers and professors around the country, as well from TV stations, for interviews about Skype that I had no choice but to revisit it.
Despite all the attention paid to Facebook and other services, Skype — the social media service before there was social media — has managed to hold its own.
As of Dec. 31, 2010, an average of 135 million users logged on each month with about 25 million simultaneous users at peak times. It is enormously popular internationally. It is getting ready to go public in 2011.
Here are some thoughts about Skype and how it can continue to stay relevant:
• GROUP VIDEO CALLING: At the Consumer Electronics Show in Las Vegas last week, Skype officially launched its Group Video Calling feature, which allows video conferencing among 3 to 10 people (though the service recommends no more than five users for better quality). If users take to the idea, it can be a real game-changer. For families and friends spread out around the world, video calls are a great way to connect (and the ability to record the calls would be great). Video is already big within Skype, accounting for almost 42 percent of all Skype-to-Skype minutes.
• SKYPE PREMIUM: The group video feature is part of Skype Premium, which costs $8.99 a month (there's an offer for 33 percent off three- and 12-month subscriptions). For that price, you get the group video calls (only one of the users needs to have a premium account) and live chat support 24 hours a day (there's a seven-day free trial).
• BUSINESS CUSTOMERS: While Skype is mostly associated with helping make personal connections, it has enormous business potential. Already 37 percent of users report using it for some sort of business-related purpose. I can see that number going up dramatically as companies cut back on travel and try to save money by seeking alternatives to traditional video and audio conference calling. In the right circumstances, for example, using group video calling to connect five offices in five countries for $8.99 a month is a no-brainer. To attract businesses, Skype needs to continue to improve quality of the connections, and to make more executives feel comfortable using what feels like a consumer-oriented service.
• MOBILE ACCESS: There's tremendous demand for video on the go, and not just for short videos or full-length movies. I expect video calling to be something that consumers and businesses will seek out more often. Here's proof: Skype's iPhone app now has video and on the first day of availability, Dec. 30, 2010, it was downloaded 4.2 million times, allowing free video calls over wifi or 3G on iPhone, iPad and iPod Touch. Android users have to wait as video calling isn't available yet, though it will "soon be available" on Verizon. Skype should make mobile availability and stability a priority for this year as other services are offering video chats.
• BUYING QIK: I'm a fan of Qik.com, one of the easiest ways to shoot and share live and recorded mobile video. So when I read last week that Skype is buying Qik, I knew it was a good deal for both sides. If the reported $100 million price tag is accurate Skype gets — for a good price — to instantly improve its mobile cred and gets Qik's user base and technology. And the Qik team gets to cash out — I mean gets to access Skype's resources and global experience.
• MAC ACCESS: Skype's emphasis has always been on its Windows products. Considering the worldwide dominance of Windows, that's not surprising. But as Macs gain traction, it will be important for Skype to keep innovating on that platform as well. I see no reason why the Mac product (now up to version 2.8) can't be as robust as the Windows one (now at 5.1). I am glad to learn there's a product manager at Skype for Mac and to read his blog post on the platform and you can download the new Mac beta here.
• FACEBOOK ACCESS: Like thousands of other companies, Skype sees the value of connecting with Facebook. In October, the two companies made it possible for you to Skype your Facebook friends (and Facebook your Skype contacts). "When you install the new Skype version 5.0 for Windows and sign in with Facebook, you can easily call or SMS your friends," Facebook wrote on its blog. "You also can check out your News Feed, update your status, and like and comment on posts directly within Skype."
• MEDIA USE OF SKYPE: As I mentioned, I have done some TV interviews via Skype — almost all of them with networks in the U.K. Because the quality isn't as good as a satellite interview, there is hesitation to use Skype among U.S. networks for talking heads, with some exceptions (and you do see Skype use in standups on local television). Every time I've suggested I participate via Skype to the big American channels, they've said, "No, thanks," insisting I go to a studio. As the quality improves, you'll see American TV media using Skype more.
• GOING PUBLIC: Skype is no longer run by eBay (the auction giant now owns 30 percent after a 2009 sale to an investor group that includes the Canada Pension Plan Investment Board, of all things, for $1.9 billion), but there's a lot of pressure to show revenue growth. Why? Because it is preparing to IPO at some time this year. Watch for Skype to emphasize new revenue streams or improve existing ones (without alienating the core users).
• UNLIMITED WORLD EXTRA: Consumers want their communications services to be instant, clear and, increasingly, unlimited. That is, they don't want to worry about being charged per call, per text, per anything. Skype's Unlimited World Extra, which is part of the newish emphasis on revenue models, is also part of the push for "all-you-can-eat" communications. For $20 a month, you get unlimited calls to landlines and cellphones in eight countries (including the U.S., of course) and unlimited calls to landlines in 40 countries (hey, Skype, why no India? You gotta fix that!). You also get $15 in Skype credit, "to do all the other things you can with Skype, like send text messages, access public WiFi hotspots and call other mobiles and landlines around the world" and Skype voicemail.
What do you think? Are you using Skype more or less often than you used to? Do you like the new features? Post your comments below or on Twitter @sree.
Every week, DNAinfo contributing editor Sree Sreenivasan, a Columbia journalism professor, shares his observations about the changing media landscape.
