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The Price of Skype

Posted On: Wed, 23/11/2005 - 11:34 by Alex

Rumours have been swirling about for several days now, but yesterday Skype / RadioShack made it official:

they have entered into a joint partnership to distribute and sell Skype-certified hardware in over 3,500 Radio Shack stores.

Pundits have characterized this move as "risky", and we can't help but agree. However, we sympathise. The fact is that Skype really has very few options to monetize their technology. Even if their claims of 54 million active users are correct, there is no incentive for those customers to stay. There are other options available, and the only product which might really build loyalty is a Skype Starter Pack, priced at US$4.99, which includes Skype software, and 30 Skype Out minutes. All the other hardware will work as well with those aforementioned options...

This is not a bad idea, however, because it will increase Skype's brand visibility - but remember, whatever you buy at Radio Shack is not enough - you will need a computer and an internet connection...

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