1. How online video
messaging came to fruition
By,
StéphaneRoque

2. Origin
• Founded in 2003 by Janus Friis and
NiklasZennstrom.
– Cofounders of music-sharing software Kazaa.
– “Service allows users to communicate with peers
by using a microphone, video by using a webcam,
and instant messaging over the internet” (2013
Skype Wikipedia page ).
– Also allows file sharing between users.

3. Development
• Friis and Zennstrom later aided by Estonian
developers AhtiHeinla, PriitKasesalu and Jaan
Tallinn in development of basic Skype
software.
• Skype begins to blossom with the increased
efficiency of broadband strength, raising
nearly $20 million in 2003 to help company
grow.

4. Development
• Every new version of the software offers
various different features.
– Instant messaging.
– File sharing.
– Group video messaging.
– Video calls through HDTV sets (Comcast/Skype
partnership beginning in 2011).

5. Development
• Software restrictions:
– Not able to call emergency numbers in any part of
the world.
– FCC ruled that Skype is not considered “an
interconnected VoIP provider” (2013 Skype
Wikipedia page).

6. Marketing
• Ebay acquires Skype in 2005 for $2.6 billion.
• In 2006, Skype adds video calling capabilities
to enhance marketing approach.
• 37% of all Skype calls are business related.

7. Marketing
• “Most of Skype's traffic consists of personal
communications between family members
and friends, who pay little--often nothing--to
use the service” (Elizabeth Woyke “Skype’s
Growth Strategy”).
• In theory the marketing is primarily aimed at a
community using the free software.

8. Marketing
• “Business customers bring in 20% to 30%
more revenue than regular consumers”
(Woyke).
• In 2010, Panasonic and Samsung teamed with
Skype to create high definition video chatting
from the living room.
– TV webcams rose in popularity during this time.

9. Marketing
• Skype provides serviceable communications
solutions for both older and younger
consumers.
– Older consumers intimidated by computers can
rely on TV webcams for easy video chats.
– Younger consumers can continue to adapt to new
changes within the Skype software.

10. Adoption
*Skype timeline collected from www.geekosystem.com: created by Max Eddy.

11. Adoption
• In 2009, Ebay sells 70% of Skype shares
because of a nearly $1 billion loss.
• Skype files for an IPO in 2010, but later
decides against it.
• In 2011, Microsoft purchases Skype for $8.5
billion.

12. Competition
• Beginning in 2005, Skype saw a rise in
competition to its services.
– Google Talk is introduced as a similar platform to
Skype.
– ooVoo was introduced in 2007.
• Supports 12-way video chatting.
• Video call recording.
• Desktop sharing.

13. Competition
• In 2011, Apple Facetime is created.
• only functioning on Wi-Fi (not 3G capable).
• Allows users to video chat with other Iphone users via
phone calls.
• Vbuzzer introduced in 2012.
– “Voice over IP and instant messaging software and service”
(2013 Vbuzzer Wikipedia page).
– Offers free voicemail and caller ID.

14. Success
• At the end of 2010, Skype had 663 million
users (63 million more users than Facebook).
– “40% of all minutes talked are now using video
chat” (pcmag.com).
– Total number of Skype users has steadily
increased every year since 2005.

15. Success
*Skype statistics collected from pcmag.com.

16. Success
• Integration of Skype with Windows.
– Skype app available for Windows smartphones
(Androids and Iphones also).
• “Skype now accounts for 12% of all long distance calls”
(TeleGeography study).
– Xbox Live and Microsoft Office also compatible
with Skype software.

17. Conclusion
• Based on research, Skype tends to be most
popular choice for video chat users.
• Other competitors popping up have pushed
Skype to produce effective new features on a
consistent basis.
• After going through a “mid-life crisis” with
ownership, Skype rebounded positively.

18. Conclusion
• Skype has “recently announced a software
development kit (SDK) that will enable third
parties to embed Skype in new types of
devices” (RikFairlie “Chatting Over Skype, This
Time From The Sofa).
• Skype’s ability to embed in every OS makes it
a universally accepted software.

19. Works Cited
• Eddy, Max. The History of Skype: Infographic.
www.geekosystem.com. May 16, 2011.
• Fairlie, Rik. Chatting Over Skype, This Time
From The Sofa. The New York Times; p10.
July 8, 2010.
• Keane, Meghan. The Secret to Skype’s
Success: Growing the Online Phone Market.
January 19, 2010.

20. Works Cited
• Woyke, Elizabeth. Skype’s Growth Strategy.
Forbes. May 21, 2010.
• Yin, Sara. Infographic: Skype Goes From Rags
to Microsoft. Pcmag.com. May 26, 2011.
• Wikipedia pages for:
– Skype
– Vbuzzer.