eBay 2008 Annual Report Download - page 18

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• PayPal Plug In, which allows users to use their PayPal account to make payments on the Internet everywhere
that MasterCard is accepted (including websites that do not accept PayPal);
• PayPal Money Market Fund, which allows participants to earn a yield on the funds in their PayPal
account; and
• Bill Me Later transactional point of sale credit, which allows consumers to obtain instant credit at the point
of transaction.
Communications
Our Communications segment is comprised of Skype. Skype is a leading global Internet communications
company and is headquartered in Luxembourg, with offices in Europe, the U.S. and Asia.
Skype Value Proposition
Skype offers a simple and convenient way for people in almost every country around the world to stay in touch
over the Internet through free voice and video calls, sending instant messages, SMS (text messaging) or files, and by
making low-cost calls to landline and mobile numbers.
Skype Overview
Skype is focused on becoming the world’s leading communications software platform. Skype is software that
millions of people use everyday to make free voice and video calls from one Skype user to another. Skype generates
revenue through its premium offerings, such as calls made to and from landline and mobile phones, voicemail, call
forwarding, and SMS. Skype users can also purchase a variety of flat rate subscriptions for regional and
international calling to landlines in many different countries.
Skype’s online communications platform is built on the following:
• Growing user base: Skype software has been downloaded more than one billion times and is available in over
28 languages. As of December 31, 2008, Skype had approximately 405.3 million registered users and was
used in almost every country around the world.
• Product features: Skype’s product offerings are simple and easy to use and enable high-quality voice and
video calls.
• Strong technology: Skype’s peer-to-peer network management, voice/video processing, and scalability
provide it with a competitive advantage.
• A thriving ecosystem: As of December 31, 2008, there were more than 190 Skype Certified hardware
devices, and 15,000 third-party developers part of an ecosystem focused on enhancing the Skype experience.
Skype Growth Strategy
To expand upon Skype’s position as a leading global Internet communications company, we will continue to
focus on acquiring new active users, reducing the churn among our existing users, and converting our users to
Skype’s premium offerings. In addition, we expect that online communications will go beyond the desktop PC and
will be available across many different devices and platforms. In this regard, we are focused on leveraging our core
desktop product, increasing relevance among mobile users, diversifying among business users and increasing our
scalability through improvements to Skype’s platform.
Our strategy for driving growth in the core desktop product is built around continuously improving the quality
and ease-of-use of our products, particularly with regard to voice and video communications. For the mobile
market, Skype is focused on increasing consumers’ ability to bring their Skype functionality with them through the
development of downloadable or pre-installed applications. We are also focused on expanding Skype usage among
businesses through the introduction of new products, solutions, and partnerships designed to help businesses save
time and money and gain a competitive edge. Skype also intends to work to become more scalable and ubiquitous by
making its communications platform capable of working with other services, devices, and Web environments.
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