Bill Campbell

Skype goes Hollywood with Voice Services

September 8, 2005 10:32 AM

Topics: Business | Skype News | Skype Partner Watch

Today's announcement on Skype Voice Services is quite exciting.

It puts some real positive spin on Skype being a Global Network; not just an application sitting on my desktop. Opening up Skype Credits will bring a smile to Markus Williamson at Connectotel who proposed something like this (download the pdf) 31 July this year.

The key point of today's announcement:

Chargeable services: callers pay per minute from their Skype Credit. You receive a share of the call revenue.

Skype "minutes" becomes currency, money to trade with.

So is Skype adding to its disruptive power against the RIAA record label owners of the world? Publishers who leave artists poor and broken?

Not with a 30 percent transaction charge for Skype. Then Tellme wants 40 percent.

Such a deal.

Niklas Z seems to want Skype to replace the RIAA Label Owners. At these rates content producers can only choose one new evil over an older one. Hey, Niklas, read Courtney Love Does the Math: "Today I want to talk about piracy and music. What is piracy? Piracy is the act of stealing an artist's work without any intention of paying for it. I'm not talking about Napster-type software. I'm talking about major label recording contracts."

Niklas' message, "We challenge the world’s most creative content providers to work with us and our partners at Tellme, Voxeo and Voxpilot to develop these new and exciting forms of Internet voice services."

The world's most creative content producers get to keep the remainders. Lucky us.

Content producers have been screwed by Hollywood, Book Publishers and RIAA Label Owners. Now we can get screwed by Skype. Content producers need a disruptive technology to unseat this tyranny. The dream we had that our saviour would be Skype and Niklas just got shattered.

I just loved this line in the press release:

"Content providers will join Skype's ecosystem of more than 400 Skype developers worldwide who are already offering hardware and software products to Skype's 53 million members."

What wasn't said was how much money these 'more than 400 Skype' developers have been raking in. No question that some hardware people like RTX are creating good revenue streams, but the majority of the 400 plus developers are into software and haven't made a dime. At least Courtenay Love did better than that with the RIAA Label owners.

Here is another great line:

Skype keeps 30% for promoting your service and connecting callers.

Inside the press release we find out what promotion to 53 million members means: "Content providers' voice services will be reviewed and the most popular will be deployed and listed on the Skype website." This is like telling Courtney Love to make her album a run away hit before we bother recording it and marketing it. At least the RIAA Label owners committed hard cash to bribe opps market the recording as it went to market.

Creating Skype Minutes as money is a brilliant move by Skype. It has the possiblities of helping Software developers monetize their efforts and of course creates a whole new set of opportunities for content producers. Especially when Skype Video ships. But I can't say anything good about the economic model Skype and Tellme propose. It is a mess.




Trackback Pings

TrackBack URL for this entry:
http://www.skypejournal.com/cgi-bin/mt/mt-tb.cgi/1534

Comments

Posted by: Paul Jardine at September 8, 2005 1:51 PM

Bill, very good post. I couldn't agree with you more, 70% cut for the delivery is daylight robbery!
The whole announcement smacks of last minute spin and I would give Marcus (and the rest of us who made suggestions on how Skype 3rd parties can make money) a lot of credit for forcing Skype into this.
What is more depressing is that Skype were not able to come up with this on their own (i.e. without the partner involvement).
I was more upbeat this afternoon, but reading the details just irritates me!
Gie's another glesh o'that wine, big yin! - B.C. circa 1980

Posted by: Bill Campbell at September 8, 2005 2:13 PM

Hello Paul!

I was thrilled when I first read the announcement too. But the devil is in the details.

The Skype Web site talks about Skype being a "group hug". Feels to me more like being "squeezed to death".

Thanks for dropping by... Regards, Bill

Posted by: phoneranger at September 8, 2005 2:25 PM

I agree that there's less here than meets the eye. There are many new distribution channels opening up for music, video and print. And Skype hasn't done enough yet to make their platform a good way to learn about and buy digital products. Maybe Ebay will teach 'em how. Or NewsCorp.

OTOH does this mean that one can trade Skype minutes? That Skype will become a global bank or PayPal competitor? We'd be glad to take Skype Credits for our headsets if we can sell them to someone else. We'd even pay what Paypal extorts from us.

Posted by: Bill Campbell at September 8, 2005 2:42 PM

Hello phoneranger!
Good points. I agree Skype will become a global bank. It has the advantage over PayPal of being able to economically bill a 1 Euro purchase.

I think in time Skype will get it right.

Thanks for stopping by and sharing your thoughts

Posted by: Jim Courtney at September 8, 2005 2:53 PM

I may be having senior's moments from time to time but not on this one. When I read about the program this morning I thought I had read on the Skype Platform Partners logos "You receive 40% for chargeable services". Now my math says that means, since Skype gets 30%, the Partners are getting 30%, not 40% while the content provider gets 40%. Aside from the math issue here, that's a long way from the 5% to 20% that I believe artists receive via the RIAA members (and that I know from experience software developers receive via OEM contracts).

Let's put this into a framework relative to other industry practices in recognizing and rewarding creative content. I certainly stand to be corrected but it seems to me that once again an Internet technology has broken down some intermediation barriers, increased market size for products and services by several orders of magnitude and reallocated more wealth to those deserving of it.

Can someone bring us up to speed as to what musicians receive for iTunes?

Posted by: Jim Courtney at September 8, 2005 3:34 PM

Alec Saunders has some interesting comments about how the Platform Partners effectively extend the Skype API to a higher level of support for industry standards (in this case VoiceXML).

Posted by: Uri L. at September 8, 2005 3:58 PM

As a music producer, who's seen all sorts of contracts (still not those with $500k advance though :) I think Skype is still not an option for effective distribution, at the moment.

In the past I wrote some toughts on the possible opportunities to utilize skype for promotion of music content. As a viral, guerilla platform that can bypass many archaic and label controlled routes (radio playlists, for example).

As an e-wallet to buy micro-content like video and music - skype is cool, but where's its real competitive advantage? Ok, Ebay will bring it for skype. But currently, if the content is just another tab in the skype window, I'm not sure if it's a real big deal.

And Skype better get their billing facilities on a proper level, before aiming to be a light paypal.

People in the music industry have been thinking for a while how to crack the IM world for the music business. Should it be playlist sharing? recommendations? the main direction today is to offer the music content in context with the IM activity. Buttons for play/buy don't really work.

Cool animations with a sample from a song could be nice teasers. I tried to create MSN winks and Yahoo audibles for our track "The Askew - Invisible". But the API wasn't clear to me.

Anyway, back to the point.

Another option was to use promotion tracks to sponsor free minutes. As a musician/ label I'll buy 500 minutes to be sponsored by my tunes. I know this trick has been tried in the past and didn't work. Maybe Ebay-Skype could revive it with an intuitive bidding system and enthusiastic users.

And there are more ideas....The thing is, that just to sell your tracks on skype, like any other digital music shop, probably won't create a new experience.
We need to find the methods to connect the basic skype experience (the voice chat) to music contetn in a way that will excite or benefit consumers.

And actually, I think I got some ideas in this direction.

Hope I could test some of them sometime :)

Posted by: Phil Wolff at September 8, 2005 5:28 PM

Uri, I want full on Skype Karaoke.

Music video. Webcam of me singing in front of the music video. Lyrics on top. People texting and talking to each other behind my back. Letting me hear applause or the audience sing with me.

I'd pay for a monthly subscription.

Posted by: Uri L. at September 9, 2005 9:45 AM

Ok. Karaoke and freestyle singing over loops is certainly something that would feel inherited in the Skype experience.

Reminder - Gary Brolsman - the boy who recorded himself singing that romanian awful dance song ("O-zone - Dragostea Din Tei", better known as "Numa numa").

Another possible advantage may rise once skype carry out their invasion into the mobile platforms.

Would skype evetually introduce a lucrative interactive music/video channel to the show biz world?

Posted by: muppetmaster at September 10, 2005 12:36 AM

Bill I am impressed. You are capable of critical thinking as it concerns Skype.
Finally there appears to be an awakening to what being closed and proprietary really means. Kudos.

Post a comment




Remember Me?

(you may use HTML tags for style)





Other Recent Posts

Skype 3.0 Folder Pollution in Life | Products | Skype杂志 | complaints | design | ebay | skype | skypejournal | voip | wishlist on 11/22/06

Skype 3.0 Beta for Windows; bugfix build 137 in General Notices | News | Products | Skype News | Skype杂志 | ebay | skype | skypejournal | voip on 11/22/06

Skype PR Wake Up Call III: The Commentary in Business | Every Post | Ideas & Views | Marketing | Skype News | Skype杂志 | Strategy | ebay | observations | skype | skypejournal | voip on 11/22/06

Wednesday morning scan in Business | Life | Marketing | News | Products | Skype Partner Watch | Skype杂志 | Strategy | Technology | Tips & Tricks | Yahoo | counterpoints | design | ebay | freedom | observations | regulation | skype | skypejournal | voip on 11/22/06

Yes, TalkPlus reverse engineered Skype. in Developers | North America | Skype Partner Watch | Skype杂志 | Strategy | Technology | ebay | skype | skypejournal | voip on 11/21/06

Email to a friend