Skype Waiting To Pounce On iTunes
from the okay,-but-why? dept
If it was inferred in the post last week about Skype’s revenue growth that we doubted Skype’s prospects, we take it all back. Skype’s plans have made believers out of us, as the eBay unit has now signed a deal with EMI Music Publishing that paves the way for it to sell music downloads and ringtones on its web site. While Skype was already in the lucrative VoIP ringtone business, selling music downloads will help it stand out from… well, nobody, really, since anybody and everybody is doing it these days. The logic here is really hard to see. Skype isn’t a service with which consumers associate buying music, and it’s unclear how it could profitably sell music and compete with iTunes, the 800-pound gorilla in the space. Perhaps they’ll follow the iTunes model and use the tracks as a loss leader to try and attract people to Skype — but that would be even more questionable, since it doesn’t seem like Skype does a great job of turning downloaders into paying customers. Update: It sounds like maybe Skype isn’t planning to sell full tracks, after all, saying the deal is just for ringtones.