BURLINGAME, CALIF. - MySpace and Skype are teaming up to create the world’s largest online voice network. MySpace members will be able to make Internet phone calls using Skype’s telephony network and MySpace’s instant message program.
MySpace says 110 million unique users come to its site each month, and that 8 million people actively use its IM service. Some 220 million people have downloaded Skype’s software. The two companies have been talking about a partnership since the days when they were independent companies--more than two years ago. They began coding in July and plan to launch a test version of the joint service next month.
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Similar to Skype’s traditional service, calls between MySpace and Skype members will be free. Users will pay a fee, however, to place calls to mobile phones and land lines, as well as use voice mail and call forwarding services. Skype will handle the billing. Revenue from the fees will be split between MySpace and Skype, though specific terms were not disclosed.
The real value of this deal seems to be exposure. Skype, which is widely used in Europe, has had a hard time building its customer base in the U.S. MySpace has had great success here but faces increased competition from players such as Bebo, Friendster and Hi5 abroad. Skype and MySpace users hardly overlap. Only 6.7% of Skype users also use MySpace IM, and only 2.6% of MySpace IM users also use Skype.
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