Digitization

How they do it: Skype is gradually replacing the traditional telecom market, and replacing it with its digital alternative. In 2014, Skype’s traffic was almost 40% the size of the entire conventional international telecom market — that is, for every ten minutes spent making international phone calls on every mobile and landline network in the entire world, four minutes are spent on Skype.

Freemium

How they do it: Much of Skype’s service is free. Skype-to-Skype calls to other users are free of charge, while calls to landline telephones and mobile phones (over traditional telephone networks) are charged via a debit-based user account system called Skype Credit.

Hidden Revenue

How they do it: Advertisements help keep Skype free for millions of users. These advertisements are displayed in an unobtrusive way and will not disrupt Skype user’s experience. If customers have purchased Skype Credits or a subscription, you will not see advertisements for other companies in Skype.

Peer-to-peer

How they do it: In Skypes Peer-to-Peer network, individuals can connect via its software and communicate via chat, voice or video calls.