Will MySpace And Skype Be Able To Help Each Other Gain Traction?
by
on October 17, 2007,
Today, MySpace and Skype are set to announce a partnership that will bring interoperability between the instant messaging clients of both services, as revealed at Webware. This will of course mean the introduction of free voice calling to any MySpace user through the VoIP service, and also free calls between a Skype user and a MySpace user. In addition, users will be able to link their MySpace profiles and photos or avatars to their accounts on Skype.
As it stands, no financial terms of the agreement have been publicized, other than the fact that the two companies will share revenue from the partnership.
Although it has been said that News Corp. is the mover behind the deal, this looks to be an opportunity that could help MySpace and Skype, both of which have hit some rough patches this year.
Both companies seem to be very optimistic about the possibilities now present, having jointly stated:
“With more than 110 million monthly active MySpace users and 220 million Skype registered users around the world, this partnership connects two of the most popular communications platforms on the Internet to create the world's largest online, voice-connected community.”
The integration will be offered in the form of a new client, which is expected to be publicly released in November. “MySpace will release MySpaceIM with Skype,” according to Om Malik, who seems to have to most information and even screenshots of the client, as seen below. “The new client will give a big boost to both communities and is a net positive for both Skype and MySpace.”
Despite the impressive user numbers presented, the announcement is not without criticism, as Caroline McCarthy notes that “only 25 million out of MySpace's 110 million active users have downloaded the MySpaceIM client.”
As far as a revenue-generating business model, the plan is to “engage the user base in the right way and increase usage and create the right sort of premium experience that people want to participate in,” stated MySpace VP of business development, Amit Kapur, who also mentioned possible monetization through advertising. This doesn't seem too feasible though, and Allen Stern has even gone as far as to call the deal a 'one night stand,' saying that it is highly unlikely that people who use a free service such as MySpace are going to buy premium services from Skype, which, given the younger audience present at the social network, will more than likely be the case.
This doesn't give MySpace a complete advantage over Facebook when it comes to VoIP (as their is a third-party Facebook app that adds a simple Skype widget directly into profiles), but it is the only network to work directly with Skype, officially. Other similar option include Jangl, Jaxtr and Jajah Buttons, all of which provide universal widgets or links to be added to blogs and profiles across the web.
Lets just hope the deal goes smoothly for MySpace and Skype, because another blow to either one could prove harmful to future growth.
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