MySpace Users Can Skype Each Other

By Max Brenn
20:58, October 17th 2007
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MySpace Users Can Skype Each Other

From now on, the users of the famous social networking site MySpace.com will be able to communicate through voice, thanks to the new partnership between Skype and MySpace.

Today MySpace unveiled MySpaceIM with Skype, a hybrid between MySpace IM client and Skype.

The partnership will also enable users to link their MySpace profiles and photos or avatars to their accounts on Skype. Both products will be available to users starting in November.

According to MySpace, for the moment MySpace IM client has an installed based of 25 million users. Still MySpace has 110 million users, while Skype is used by 220 million users. That means that soon enough MySpaceIM can become one of the main players in the IM market, which currently is dominated by AIM and Yahoo Messenger.   

MySpaceIM with Skype will be available in 20 countries where MySpace has localized communities and does not require MySpace users to download any additional Skype software.

“MySpaceIM with Skype is a truly groundbreaking product integration and partnership,” said Chris DeWolfe, co-founder and CEO of MySpace. “Skype has the leading technology in Internet voice communications and an enormous international user base that we’re thrilled to connect with our existing community. Our network has no geographical boundaries—Internet calling is the natural next step for how our members communicate with each other.”

In addition to free, high-quality Skype calling, MySpaceIM with Skype will also allow the users of the MySpace network to optionally select Skype’s premium fee-based products, including: SkypeOut, SkypeIn, Voicemail and Call forwarding.

MySpaceIM with Skype takes advantage of the many personal privacy settings available to users throughout the MySpace network. Users who have a MySpace profile set to “private” can not receive a Skype call from someone who is not on their friends list. Users can also choose to allow only those individuals they have affirmatively added to their Skype personal contact list to call them.

The partnership with MySpace could be a very good news for Skype after earlier this month eBay Inc. revealed in an SEC filing that it will take $1.4 billion in charges related to the calling service in the third quarter, of which $530 million is an "earn out settlement" that will satisfy eBay's obligations under the purchase agreement.

eBay Inc. acquired Skype for a $2.6 billion price tag in 2005. Over the last quarter, Skype's revenues of $90 million accounted for only 5 percent of eBay's total revenues. Skype charges $29.95 for a year's worth of SkypeOut calls, which allows users to make unlimited long-distance calls to any phone number in the US and Canada.

In mid-August this year, a mix of planned and unplanned outages and downtime left many users unable to log on to the service to make phone calls, for a total of around 30 hours.



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