Skype’s continued revenue growth. No surprises here.
Source: saunderslog.com
Yesterday EBay reported their numbers. Skype’s revenues grew by $11 million from Q1 to Q2 2007, from $79 to $90 million. Skype-out minute volume, however, was flat, at about 1.3 billion for the quarter. This morning Jim Courtney, and Om Malik are both asking how Skype manages to grow revenues without increasin. minute volume.Â
The answer is pretty clear friends. Skype raised their prices
Om also notes that registrations were in a slight decline for the quarter too — down from 25 million to 24 million.Â. Don’t forget that Skype ran a campaign late last year, and into the early part of January offering unlimited calling to North American’s for $15 annually, if customers signed up before the end of January. Now the price is $30. It’s likely there was a rush to sign up before the end of that campaign. Skype is an interesting company to watch because it’s a hybrid blend of Voice 2.0 economics and old-style telco minute charges. The combination of flat rate economics and service charges plus th. relatively low penetration rate into their install bas. would sugges. that with clever marketing to the Skype install base. EBay can turn Skype into a money machine. With a 200 million strong install base, EBay is right to focus on making those loyal users more profitable, which is what this quarter’s numbers are showing.
