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"They're going to use whichever video chat comes built into their SmartPhone, tablet, computer, etc. They're going to use FaceBook's eventual video chat service

by riams 15y ago

"They're going to use whichever video chat comes built into their SmartPhone, tablet, computer, etc. They're going to use FaceBook's eventual video chat service or something Google offers." Really? I'm thinking the barriers to switch from Skype are pretty high due to the vast amount of users Skype has. Why switch to a slightly more polished product when you have no one to communicate with there? We have to remember that the Hacker News crowd probably represents early adopters. Most people will not be as quick to try/switch to new services.

JoeAltmaier 15y ago
They were pretty quick to adopt Skype. Its only seconds to load another VOIP-style client, and no time at all to use the one that came preinstalled. And you always know who you want to talk to on Skype, you're not calling the flower shop or anything, its your brother-in-law or whoever, so you can arrange for them to try another client in seconds. So the barrier to switching is pretty low.
- gsmaverick 15y ago
  Very few people are going to go through the hassle of installing a new client just to make a phone call if a good solution, which both parties have, already exists.
  - JoeAltmaier 15y ago
    Well, they did that for Skype. And if it comes with the platform, that barrier is gone. But yes, there is market inertia and Skype has it.
    - jokermatt999 15y ago
      Most people I know who use Skype didn't have a video/computer calling solution before Skype. The barrier to installation for a new service that is much lower than switching to a competing service. If they're just getting into that kind of service, the benefits are quite large. Switching to a competing service has much less utility to them, because they already have a solution for the main problem; in this example, calling people. Switching requires losing their old contacts (network effect) as well as learning a new system. To put it in equation: Installing something like skype for the first time: Total utility of program - hassle of installing and learning a new program = large benefit Installing a competitor: Marginal utility of somewhat better program - previously available contacts on old system - hassle of installing and learning a new program = much less benefit
- riams 15y ago
  I think you are overestimating the average computer user. As personal computing and broadband access has risen quickly, so have the class of technophobes. Also, a product will seldom sell itself. The Skype brand has plenty of intangible value, for instance from their collaboration with Oprah.

by riams 15y ago

JoeAltmaier 15y ago

They were pretty quick to adopt Skype. Its only seconds to load another VOIP-style client, and no time at all to use the one that came preinstalled. And you always know who you want to talk to on Skype, you're not calling the flower shop or anything, its your brother-in-law or whoever, so you can arrange for them to try another client in seconds. So the barrier to switching is pretty low.

gsmaverick 15y ago
Very few people are going to go through the hassle of installing a new client just to make a phone call if a good solution, which both parties have, already exists.
- JoeAltmaier 15y ago
  Well, they did that for Skype. And if it comes with the platform, that barrier is gone. But yes, there is market inertia and Skype has it.
  - jokermatt999 15y ago
    Most people I know who use Skype didn't have a video/computer calling solution before Skype. The barrier to installation for a new service that is much lower than switching to a competing service. If they're just getting into that kind of service, the benefits are quite large. Switching to a competing service has much less utility to them, because they already have a solution for the main problem; in this example, calling people. Switching requires losing their old contacts (network effect) as well as learning a new system. To put it in equation: Installing something like skype for the first time: Total utility of program - hassle of installing and learning a new program = large benefit Installing a competitor: Marginal utility of somewhat better program - previously available contacts on old system - hassle of installing and learning a new program = much less benefit
riams 15y ago
I think you are overestimating the average computer user. As personal computing and broadband access has risen quickly, so have the class of technophobes. Also, a product will seldom sell itself. The Skype brand has plenty of intangible value, for instance from their collaboration with Oprah.