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What just happened? Skype was a leader in video communication back in 2003, but its relevance has slowly dwindled over the years. Microsoft is trying to reverse the trend with a move that is unusual for Redmond: It is making the platform ad-free, presumably in the hope of better competing with providers like WhatsApp, iMessage, Signal, and Telegram, none of which clutter their user experience with ads.
Skype's latest update is now ad-free for users in the Insider program, affecting both the main chat interface and channels.
"We're excited to announce that Skype is now ad-free! Our latest update removes all ads from Skype channels and the entire Skype platform, ensuring a smoother, decluttered and more enjoyable user experience," said Skype product manager Irene Namuganyi.
In addition to removing ads, Microsoft is also enhancing Skype with several new features. The AI image creation tool for Windows and macOS is being improved, allowing users to access it directly from chat windows. AI-generated images will now expand when clicked, and the user interface has been refined to better align with the macOS design.
Furthermore, Skype for iOS will now support OneAuth integration, enabling automatic sign-in for users already logged into other Microsoft apps. This feature simplifies the login process across Microsoft services.
The update also addresses a bug that caused issues with sending photos and videos over 5G networks. Other bugs reported by users that Microsoft addressed include fixes for notifications and call answering.
But it is Microsoft's decision to make Skype ad-free that really deserves scrutiny, as it is quite unusual for Redmond.
Microsoft has a history of incorporating ads into its software and services, particularly in its operating systems like Windows 11, where users have reported intrusive ads in various products, including the Start menu and full-screen prompts encouraging upgrades. Microsoft has paid little heed to these complaints, though, as ads are a crucial revenue stream for the company.
But Microsoft seems to be taking a different approach with Skype. This shift suggests that Microsoft may be reevaluating how it prioritizes user engagement and satisfaction over advertising revenue in specific applications. In the case of Skype, the move could potentially be aimed at making the platform more competitive with other messaging platforms that offer ad-free experiences, such as WhatsApp, iMessage, Signal, and Telegram.
In short, Microsoft appears willing to forgo some ad revenue in favor of improving the core user experience of Skype. The aim is to retain existing users and attract new ones, with the ultimate goal being to grow its dwindling user base.
Skype was a pioneer in internet telephony and video communication starting in 2003, but it has been losing relevance over the years. By improving the user experience, Microsoft may be hoping to maintain its relevance in an increasingly competitive communication market.