I live in New York but my family is from Australia so I use video-calling them to them all the time. I've tried using Skype but basically it's terrible. Poor audio, choppy frame rates and at some point it will start giving messages about "degraded performance" and we'll lose video.
My setup is a 50Mbps cable line using wireless (N) from a Macbook Pro. The other end is ADSL of varying degrees (1.5 to 10Mbps) on wireless (N) from a Windows PC or laptop.
We've basically given up on using Skype.
What works flawlessly and with much higher quality? Facetime.
Am I really the only one who has had terrible experience with Skype?
My point with this is that Skype is not the dominant video medium it once was, especially not from a technical standpoint.
What's more, video calling is becoming a commodity. I think we're near or above 100M Facetime-capable devices (iPhones, iPod Touches and Macs). Google Talk is available to however many millions of GMail users are out there.
Skype isn't even a strong business (IMHO). Most consumers don't pay, which leaves the business type users who use multiway calling I guess. But where p2p video calling is becoming commoditized, who's to say multiway calling won't quickly follow suit?
Basically, $8.5B for Skype is nuts.
It seems the one who really needed to buy Skype was Facebook who have no video calling to speak of. One wonder if Skype was "the last piece of chocolate cake" syndrome, meaning you want something you otherwise wouldn't just because it's the last piece.