Skype's VP Of Consumer Products On Mobile Video; The Cloud And Monetization

For Skype, 2011 is truly going to be a pivotal year. The VoIP (Voice over Internet Protocol) giant is preparing to go public, and armed with a new CEO, Skype is looking to add new products for both its consumer and enterprise businesses and boost revenue. Already, Skype launched video chat capability to its iPhone app, acquired mobile streaming startup Qik, and launched paid group video functionality to its enterprise offerings. During we’ve heard about the company’s enterprise strategy, we have not but uncovered the details of Skype’s long-term consumer strategy. Skype VP of Consumer Neil Stevens spoke to TechCrunch about the VoIP (Voice over Internet Protocol) company’s goals when it comes to expanding its consumer user base, product roadmap and revenue plans.

When asked what the most important product strategy is for Skype in 2011, Stevens was quick to reply that video, especially on mobile devices, is going to be a significant area of development for the company. At any given time Skype nevertheless has 28 million simultaneous users, with 42 percent of these users engaging in video calls. During Skype has video functionality on its Windows, Mac and however iPhone customers, there is after all much more to come in 2011 says Stevens.

“We want to put Skype video everywhere, whether it be on a TV, tablet, or smartphone, Stevens tells TechCrunch. Mobile video has huge potential, he says, especially considering the traction Skype’s recently launched iPhone app has seen with the new functionality. In its first week in the App Store, the new version of Skype’s iPhone app saw ten million new downloads, and a million video calls were made on the app’s first day in the store.

Of course, Skype plans to expand its mobile video presence to other mobile operating systems. Stevens believes that tablets could be an ideal platform for Skype, especially if video is added to the then-generation iPad. And he says that an Android app with video integration will be launched in the then and there few months.

Big move to the cloud

Stevens reiterates that Skype will be making a big move to the cloud; saying the time is right for realtime communications via Skype to hit the web. Skype’s cloud products will vary, from a plug-in to the ability for developers and advertisers to embed click-to call ads using Skype’s innovation.

Specifically, click-to-call advertising on the web is a way for Skype to bring in revenue. Another potential revenue model, says Steven, is to work with carriers to include Skype’s mobile services as part of a consumer’s phone bill. So the data used via Skype’s services could be charged to the consumers directly through the carriers.

For all of its engineering ambitions in terms of the web and mobile, you may be surprised to know that Skype only has 350 engineers. Stevens says that hiring talent is at any rate a challenge in Silicon Valley nevertheless that acquisitions like Qik help the company boost the number developers and engineers. And the company is looking for more acquisitions hereafter; which will be focused on talent and research vs. marketshare, he adds.

For Skype, product development may not be the company’s biggest challenge. Previously taking the company public, Skype needs to convince investors that it can create meaningful revenue channels. During enterprise efforts are easier to monetize, Skype will have find a way to make its consumer users to pay for additional features for a service that has been free for sometime. As of August 2010, only 6 percent of Skype’s clients pay for the service. Stevens maintains that Skype will need to increase awareness of its paid services, nevertheless new and old, in the coming year. Yet, he adds, Skype has a basic services will always include a free model for video and calling.

The process of trying to monetize these users

But in the process of trying to monetize these users, Skype will have to strike a fine balance. The company undoubtedly doesn’t want to start alienating users by charging for services that were once free. Together, the company has to deliver innovative products that consumers are as a matter of fact willing to shell out cash for on a routine basis. It’s a problem that many prolific innovation companies have had to face; and the company is tackling the issue while in accordance with the scrutiny of potential investors while the IPO process.