Skype's Sale As Media Feint

ansak writes "Bob Cringely's latest article shows evidence that some aspects of the 90s bubble are indeed back: Why would Rupert Murdoch think of paying $3billion for a mostly free online service like Skype? But his last line shows a keen understanding of Murdoch's skills and methods: 'By putting Skype in play, he distracts for no money at all most of the major media companies. And while they try to figure out how to respond to VoIP, old Rupert will be attacking them on some completely other front. He'll be stealing their shoes.'"

Comments

This goes much further back than the 90's

[El Cubano]

Bob Cringely's latest article shows evidence that some aspects of the 90s bubble are indeed back: Why would Rupert Murdoch think of paying $3billion for a mostly free online service like Skype?

This is the classic fake left and go right. It has been around as long as competition in business. Why is it that as soon as you throw in a 'net, eThis, iThat, or whatever other technology related slang, people immediately get stupind and forgetful? It's business plain and simple. Make your competitor concentrate on one part of the market and you have free reign in the rest. It's that simple.

Re:This goes much further back than the 90's

[timeOday]

Cringely's pretty clever in how he wrote this up, too. If Murdoch buys Skype, Cringely will be hailed as a prophet. And if not, Cringely's "ploy" theory still seems plausible, due (if nothing else) to Machievelian appeal. Either way, Cringely comes off looking good.

Skype quality??

[Really Wannabe Geek]

I have never understood why Skype is considered good quality VoIP. Perhaps my experience is the only bad one? I tried Skype for an international chat whether the other machine was on a dial up connection (mine on DSL). Skype worked well only the first time and all that I got on later attempts was weird voice quality, long lags, etc. Nowadays, I have settled on Yahoo Messenger which does an amazing job of voice chat - beats the latest MSN Msgr hands down; rarely a lag, excellent quality, near instant call connect. I have uninstalled Skype a long time ago. Did anyone else have a chance to compare Skype with the IM voice chats?

Re:Skype quality??

[Knights who say 'INT]

Skype works behind NATs and is available for Linux and OS X.

There aren't really any alternatives.

Why buy Skype?

[hotspotbloc]

Why would Rupert Murdoch think of paying $3billion for a mostly free online service like Skype?

$3b is a lot but Skype has a large and loyal user base. They could tie in a lot of things like: legal online music sales, expanding SkypeOut and SkypeIn and banner ads in the software. With Skype expanding out of the PC (like how Motorola is adding Skype to some of their phones) it has a lot of potential.

It's a little like someone looking at buying Apple. While they have good hardware and software they are so much more. Maybe that's what Murdoch sees for the future of Skype.

But is it worth $3b? I don't know.

Lachlan Murdoch quits News Corp

[SpaceLifeForm]

links

Perhaps there is a connection.

Explains the newspaper articles.

[orpheus82]

Well, that explains the full-page article in Australian NewsCorp-owned newpapers this morning touting VoIP as the way of the future for phone calls. And of course, the article mentioned Skype several times as if it were the only service of its type available!

I can't believe

[mpapet]

Someone else hasn't realized that he'll make people pay for VOIP and push it through cable boxes everywhere he can.

In taiwan it's called the triple play. (Media, Internet, Telephone)

He really doesn't care about the "free." He cares that it's a proven system that works.

Michael