Skype 90% Free, revenue 900Mil - GoFuckYourself.com

BJ · 03-12-2010, 02:41 AM

Saw this on Japanese TV. Core business is free (no shit) and the other 10% produces $900mil rev.

CunningStunt · 03-12-2010, 03:50 AM

It's very hard to convince most backers there's so much much money in "free", they just don't understand the business concept.

CarlosTheGaucho · 03-12-2010, 08:22 AM

Well they got a huge audience by offering something that's functional (although already existed before), spread the news and the brand out there, and then they offer you to purchase add ons that only cost a couple bucks, like having your own number, voice box, credit to call land lines etc.. - good plan and good execution.

I wonder what is the profit and how much did they have to invest into development etc. before turning profit.

Nothing's free.

mafia_man · 03-12-2010, 02:10 PM

Who else can give me 10,000 minutes to phones and landlines abroad for a measly £3.50 a month?

That's why Skype is minted, they offer a desirable service for next to nothing and still make profits.

Now if we can apply that to porn...

_Richard_ · 03-12-2010, 02:13 PM

Quote:

Originally Posted by mafia_man

Who else can give me 10,000 minutes to phones and landlines abroad for a measly £3.50 a month?

That's why Skype is minted, they offer a desirable service for next to nothing and still make profits.

Now if we can apply that to porn...

hell.. they are setting up with skype phones now..

JuiceMonkey · 03-12-2010, 02:33 PM

900mil rev.. but what is their overhead like? I assume *very* high

dyna mo · 03-12-2010, 02:37 PM

i guess ebay made the right call when they bought it for 2.5b.

get it, right call...yuk yuk.

heymatty · 03-12-2010, 02:48 PM

As stated before I'd guess the expense ratio is very high on that 900mill.

closer · 03-12-2010, 03:13 PM

Ebay is looking to sell Skype already for such a long time ... Google didn't want it ... so I think that revenue isn't giving them much profit

dyna mo · 03-12-2010, 03:15 PM

Quote:

Originally Posted by closer

Ebay is looking to sell Skype already for such a long time ... Google didn't want it ... so I think that revenue isn't giving them much profit

isn't that just speculation?

Mike Nyce · 03-12-2010, 03:19 PM

when you think about how many people all over the world use skype, it really only boils down to about maybe $5 a user if that.

woj · 03-12-2010, 03:29 PM

revenue doesn't mean much, they could be losing $$ for all we know...

Serge Litehead · 03-12-2010, 03:31 PM

Quote:

Originally Posted by CarlosTheGaucho

Well they got a huge audience by offering something that's functional (although already existed before), spread the news and the brand out there, and then they offer you to purchase add ons that only cost a couple bucks, like having your own number, voice box, credit to call land lines etc.. - good plan and good execution.

I wonder what is the profit and how much did they have to invest into development etc. before turning profit.

Nothing's free.

skype was developed by same folks who developed kazaa p2p sharing software. two founders and 3 developers. kazaa must have made them little fortune

in 2005 it was sold to ebay for 2.6 billion. next year ebay reported 1.7 billion loss for skype
http://en.wikipedia.org/wiki/Skype

CarlosTheGaucho · 03-13-2010, 12:56 PM

Quote:

Originally Posted by holograph

skype was developed by same folks who developed kazaa p2p sharing software. two founders and 3 developers. kazaa must have made them little fortune

in 2005 it was sold to ebay for 2.6 billion. next year ebay reported 1.7 billion loss for skype
http://en.wikipedia.org/wiki/Skype

Yeah I had a feeling I read something like that, it's also impossible to find any actual "profit" data

Interesting read

xmas13 · 03-13-2010, 01:29 PM

http://techcrunch.com/2009/10/21/sky...terly-revenue/
http://tctechcrunch.files.wordpress....ypeQ3slide.png

Farang · 03-13-2010, 02:01 PM

Skype is the shit, have been using it for oversea calls for years.

Manowar · 03-13-2010, 03:08 PM

i dont think it grew like they were expecting

borked · 03-14-2010, 12:56 AM

Quote:

Originally Posted by mafia_man

Who else can give me 10,000 minutes to phones and landlines abroad for a measly £3.50 a month?

That's why Skype is minted, they offer a desirable service for next to nothing and still make profits.

Now if we can apply that to porn...

It depends on the market... on continental Europe, most Telcos already bundle free international calling with their internet and TV deals. So Skype doesn't get much of a look in.

$5 submissions · 03-14-2010, 12:56 AM

That's revenue. What about net income?

BigRod · 03-14-2010, 12:57 AM

There is GOOD money in FREE

halfpint · 03-14-2010, 01:07 AM

There has always been money in FREE

tiger · 03-14-2010, 01:10 AM

I just signed up biatches!

slapass · 03-14-2010, 06:22 AM

They just sold 70% for about what they paid for the whole thing. 1.9 bil and 125 mil. dollar note. They expect an 16-18% growth next year in earnings which matches last year so skype was about breaking even from the looks of it.

seeandsee · 03-14-2010, 06:41 AM

Quote:

Originally Posted by closer

Ebay is looking to sell Skype already for such a long time ... Google didn't want it ... so I think that revenue isn't giving them much profit

thats the point

crockett · 03-14-2010, 08:27 AM

Quote:

Originally Posted by CunningStunt

It's very hard to convince most backers there's so much much money in "free", they just don't understand the business concept.

Simply because, not "every" product is capable of doing it. Lets be real here.. the main reason anyone uses Skype is for the internet phone. The other stuff that is "free" is just extra fluff.

Skype wouldn't be anywhere near as popular as it is nor making that kind of money if it wasn't for the internet phone and ability to have a phone number. Both of which they charge for and don't offer free.

If they didn't have the phone service it would just be another of the long list of chat programs fighting for a place in the market.

03-12-2010, 02:41 AM	#1
BJ Confirmed User Join Date: Mar 2002 Location: asia Posts: 5,590	Skype 90% Free, revenue 900Mil Saw this on Japanese TV. Core business is free (no shit) and the other 10% produces $900mil rev.

03-12-2010, 08:22 AM	#3
CarlosTheGaucho Confirmed User Industry Role: Join Date: Oct 2005 Posts: 9,512	Well they got a huge audience by offering something that's functional (although already existed before), spread the news and the brand out there, and then they offer you to purchase add ons that only cost a couple bucks, like having your own number, voice box, credit to call land lines etc.. - good plan and good execution. I wonder what is the profit and how much did they have to invest into development etc. before turning profit. Nothing's free. __________________ CTG Media \| skype: carlosprague \| cb \|at\| ctgmedia \|dot\| net \| Want to make more with your Dating Traffic? \| Read My Educational Series \| Read my Adult Biz Chronicles \| Did your ad revenue drop by 40 pct. or more last year?

03-12-2010, 02:10 PM	#4
mafia_man Confirmed User Industry Role: Join Date: Jul 2005 Location: icq#: 639544261 Posts: 1,965	Who else can give me 10,000 minutes to phones and landlines abroad for a measly £3.50 a month? That's why Skype is minted, they offer a desirable service for next to nothing and still make profits. Now if we can apply that to porn... __________________ I'm out.

03-12-2010, 02:33 PM	#6
JuiceMonkey Confirmed User Join Date: Oct 2004 Location: Brisbane/Vancouver/SanFran Posts: 3,581	900mil rev.. but what is their overhead like? I assume very high __________________ ICQ: 72251955 GTalk: JuiceMonkey

03-12-2010, 02:48 PM	#8
heymatty Confirmed User Join Date: Oct 2001 Location: Scottsdale :) Posts: 2,188	As stated before I'd guess the expense ratio is very high on that 900mill. __________________ Cashlantis ~ Black Book Cash

03-12-2010, 03:50 AM	#2
CunningStunt Confirmed User Industry Role: Join Date: Aug 2006 Posts: 5,594	It's very hard to convince most backers there's so much much money in "free", they just don't understand the business concept.

03-12-2010, 02:37 PM	#7
dyna mo The People's Post Industry Role: Join Date: Dec 2008 Location: invisible 7-11 Posts: 65,015	i guess ebay made the right call when they bought it for 2.5b. get it, right call...yuk yuk.

03-12-2010, 03:13 PM	#9
closer Confirmed User Industry Role: Join Date: Sep 2005 Location: ICQ :: 34739932 :: Les Pays-Bas Posts: 1,707	Ebay is looking to sell Skype already for such a long time ... Google didn't want it ... so I think that revenue isn't giving them much profit

03-12-2010, 03:19 PM	#11
Mike Nyce Registered User Join Date: Jan 2010 Posts: 68	when you think about how many people all over the world use skype, it really only boils down to about maybe $5 a user if that. __________________ mikenyce[at]gmx.com TheWebsiteStore.com

03-12-2010, 03:29 PM	#12
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	revenue doesn't mean much, they could be losing $$ for all we know... __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

03-13-2010, 01:29 PM	#15
xmas13 Confirmed User Join Date: Dec 2004 Location: GFY Posts: 5,176	http://techcrunch.com/2009/10/21/sky...terly-revenue/ http://tctechcrunch.files.wordpress....ypeQ3slide.png __________________ ICQ 557504926

03-13-2010, 02:01 PM	#16
Farang one sick puppy Industry Role: Join Date: Oct 2004 Location: Where the worst of the West meets the worst of the East Posts: 11,521	Skype is the shit, have been using it for oversea calls for years.

03-13-2010, 03:08 PM	#17
Manowar jellyfish Join Date: Dec 2003 Posts: 71,528	i dont think it grew like they were expecting

03-14-2010, 12:56 AM	#19
$5 submissions I help you SUCCEED Industry Role: Join Date: Nov 2003 Location: The Pearl of the Orient Seas Posts: 32,195	That's revenue. What about net income? __________________ Need a NON-ADULT income stream? We build your YOUTUBE CHANNEL for only $20 per video! For Hire: $3/hour or $400 per month Marketing Specialist Virtual Assistants

03-14-2010, 12:57 AM	#20
BigRod Confirmed User Join Date: Apr 2005 Location: Vancouver, BC Posts: 3,685	There is GOOD money in FREE __________________ Rod Macdonald Mainstream Ad Agency Owner ICQ: 607306

03-14-2010, 01:07 AM	#21
halfpint GFY's Halfpint Industry Role: Join Date: Jun 2007 Location: UK Posts: 15,223	There has always been money in FREE __________________ Get FREE website listings on Cryptocoinshops.net

03-14-2010, 01:10 AM	#22
tiger Confirmed User Industry Role: Join Date: Apr 2002 Location: Los Angeles Posts: 6,986	I just signed up biatches! __________________

03-14-2010, 06:22 AM	#23
slapass Too lazy to set a custom title Join Date: Nov 2002 Location: Earth Posts: 14,622	They just sold 70% for about what they paid for the whole thing. 1.9 bil and 125 mil. dollar note. They expect an 16-18% growth next year in earnings which matches last year so skype was about breaking even from the looks of it.