Skype Plans to Swap Display Ads for Free Calls

Internet voice company Skype has recently announced that it is brewing an "advertisement supported free call service", which compensates for the cost of voice calls through advertisement operations, thus providing users with completely free services.

According to Reuters, Skype stated that the launch of the new service mainly comes from the pressure of its parent company, auction giant eBay. As the CEO, Niklas Zennstrom said, although the company currently places great emphasis on the operation of paid services, its 220 million free service users are also a valuable asset for Skype. It is reported that in Skype's current services, computer-to-computer calls are completely free, while calls to fixed-line telephones require payment of certain fees. "We have been striving not to over-promote our paid services, so the company is currently developing a completely new plan, where the service charges will be supported by advertisements," Zennstrom said at a media conference held in Estonia.

Mr. Zennstrom cited the completely open SkypeFind as an example to illustrate the feasibility of the advertising profit model, which includes 200,000 yellow pages worldwide. "We still believe that SkypeIn and SkypeOut will be the main ways for the company to make profits in the short term," it was reported. The former helps users make ordinary telephone system calls through their computers, while the latter helps users call other Skype accounts on other computers.

In September 2005, auction giant eBay acquired Skype for $4.1 billion, and eBay's high-priced acquisition plan proved the value of Skype's business. Now buyers and sellers on eBay's auction site can communicate conveniently through Skype. However, after considering the slowdown in Skype's profitability, eBay has been looking for new opportunities. This advertisement-supported free call service was launched under the pressure from eBay. "Skype will not develop arbitrarily; it better meets the expectations of investors," said Meg Whitman, CEO of eBay. Statistics show that Skype's net revenue increased to $90 million in the second quarter, compared to $44 million during the same period last year.