In 2020 the tech industry saw one company rise out of the global pandemic as an industry leader; That company was Zoom. But before Zoom there was Skype. You would be forgiven for forgetting about the video conferencing app, as during a global pandemic that forced most of us to work from home and rely on videoconferencing apps, Skype seemed to disappear. So, what happened to this former industry titan?
Surprisingly, considering the extensive media coverage surrounding Zoom (in April 2020 Zoom featured in over 195,000 stories whilst Skype featured in just 50,000), Skype had a successful 2020. The video conferencing app saw an increase in users of around 70%. Skype now has around 40 million registered users actively using the app every day and saw an increase of Skype-to-Skype calls by 220%. Figures released from Microsoft (the owners of Skype) indicate there were 200 million Skype users in the first 6 months of 2020. Despite these impressive stats they pale in comparison to those of Skype’s new contemporary Zoom. Currently, Zoom has been downloaded more than 477 million times.
So why has Skype lost so severely to Zoom? The answer is quite simple: quality. Skype was originally renowned for its high video quality which was consistent around the world. However, after Skype was acquired by Microsoft in 2011 it underwent a transformation in 2017. Now laden with features from social media apps, such as temporary video stories, the quality of the basic service Skype was intended to supply decreased. The re-design was divisive amongst tech fans and the average reviews on app stores for Skype lowered to 1.5 stars. Users complained about a complicated interface and poor video quality. Skype started to stagnate, and Microsoft confirmed their own issues with the app by releasing Teams.
Microsoft still has plans for Skype. Although, some of the latest updates seem to play catch up with other videoconferencing apps (Zoom), such as custom backgrounds and a grid mode to display all users in a video call at the same time. Microsoft is also adding their Together Mode, a popular feature on Microsoft Teams, to Skype. Up to 5 users will be able to appear in the same virtual space with only one participant needing to have Skype installed on their computer, the rest can access the call through a Meet Now link.
The recent WhatsApp backlash could also benefit Skype. WhatsApp is set to change its privacy rules concerning the selling of data to third parties. To continue using the app users will have to agree to the new terms. Due to this, there has been an online campaign by WhatsApp users to move to other messaging apps, with the two frontrunners being the relatively new app Signal and the older Skype. Microsoft has encouraged this tweeting they don’t share users personal data with third parties.
However, this optimism is to be short-lived, as Microsoft has confirmed they are officially retiring Skype for Business on the 31st of July 2021. Instead, users will be migrated to Teams for all their corporate videoconferencing needs. This announcement is unsurprising as Microsoft confirmed back in 2017 that they would be replacing both Skype’s business-focused and consumer versions with Teams. For some, this will be an inconvenience, but they will be in the few. In April 2020 Creative Strategies performed a survey of 1,110 US companies and found only 15% used Skype, 18% used Teams and 27% used Zoom. These figures show that for many companies the move away from Skype has already happened.
High-quality video calls without any glitches are what consumers expect. The pandemic has caused an increase in users who are less tech-savvy to use videoconferencing. They need an app that is easy to navigate and can host large numbers of users in one call. Skype cannot guarantee these qualities. Whilst it is sad to see a company shut down, with Skype this seems to be the inevitable end.
To keep up to date with the latest commercial news, click on commercial awareness to get your daily dose.
Donate & Support