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Skype at Wallmart
Item that got included in the notes yesterday but rolled into today’s podcast concerned the addition of Skype to the Walmart product line.
This would include Skype linked handsets, as well as Skype products such as Skype-Out cards and service credits.
This does not look like a quick way to riches for E-Bay – who dropped over $4 Billion on the purchase of Skype a few years ago. Given the realities of being a supplier to Walmart (at least as presented in the recent book “The Walmart Effect” this is not the way to riches for almost any supplier (at least a supplier of a physical product).
The news item mentioned that most of Skype’s earnings comes from overseas, roughly $74million last quarter. Sounds impressive, until you annualize to $300 million and then project that on an investment of $4Billion.
Even if you do push off your bandwidth expenses to all those Skype P2P connections, that’s still not a lot of money to make each year, off of what is, so to speak, a LOT of money.
How is the “Lowest Price, Always” going to help that situation ?
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