3 ms·

There is a very strong network effect with Skype for PC to PC calls. But I doubt MS is going to get full value. They have had little success with freemium busin

There is a very strong network effect with Skype for PC to PC calls. But I doubt MS is going to get full value. They have had little success with freemium business models and I don't see why this would be different.

timc3 16y ago
In what way do you measure success? Hotmail and Windows Live Messenger for two services have a huge amount of users.
- InnocentB 16y ago
  I wouldn't call either of those an example of a successful freemium business model. A free, ad-supported business model, perhaps.
- Tyrannosaurs 16y ago
  Don't they still lose money though? Certainly as of 2008 online services (search, hotmail, messenger) was losing over $1bn a year. I don't believe that they've ever broken that down publicly but it would seem unlikely that any one of those services is making significant money if the who division is losing cash. 10 years on (I think the Hotmail acquisition was that far back) it should be making money unless Microsoft has become a charity.
- dataminer 16y ago
  I have accounts on Hotmail and Windows Live Messenger since their early days but my use of both of these services has diminished over last couple of years. I have observed the same attitude among my friends and family, all of them still have those accounts but they are active users of other services. I hope skype doesn't end up like Hotmail, windows live messenger.
netcan 16y ago
My estimation is that skype makes enough money to be a fairly profitable company with it's business model (<$1b per year revenue, small or negative profits most years) if that is the goal but, it probably doesn't merit $7b. MS will need to get more value out of skype than current skype out call revenues. They're probably planning something else.