Wednesday, April 1, 2009

The profitability of skype

The question as to whether it will be possible to turn what are largely free internet programs into profitable companies is one that has vexed online entrepeneurs for some time. This article argues that of all the web 2.0 services out there, skype has the greatest chance at becoming a truly profitable enterprise. As opposed to Facebook and YouTube, Skype is profitable as a stand-alone business and had revenues of 500 million dollars in 2008. With each user it becomes ever more profitable, something that cannot be claimed of services such as MySpace et al and so Skype may well be eventually considered the new Amazon or the new Google.

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