Microsoft Axes Credit Sales As Skype Shifts To Subscription Model

Microsoft has quietly stopped allowing customers to top-up their Skype accounts with credit or buy new phone numbers on the platform. Instead, the company is shifting its focus towards monthly subscriptions for regional and global Skype-to-phone plans, marking a significant change in the way users interact with the service.

The news was first spotted last week by a volunteer moderator on a Microsoft forum, who noticed that the option to add credit to a Skype account was no longer available. A Microsoft spokesperson confirmed to TechCrunch that the company has permanently halted new sales of Skype credit and phone numbers, citing customer usage and needs as the driving force behind the decision.

For users who rely on Skype’s phone functionality, this change may have significant implications. While existing Skype phone numbers will continue to work, those without a phone number will need to upgrade to a subscription plan or explore alternative options. The shift towards subscriptions is likely to impact tens of millions of people who previously used Skype for its phone features.

Skype has been a trailblazer in the internet calling and messaging space since its launch in 2003. Founded in Luxembourg, it was one of the first large-scale VoIP services to offer free internet-based voice calls that bypassed traditional telephone lines. The company’s instant messaging, video, and file-sharing features were game-changers for the industry.

Microsoft acquired Skype in 2011 for $8.5 billion and has remained its owner ever since. While the service has always been free for Skype-to-Skype communication, it relied on charging users for calls to mobile phone numbers or landlines. The company also offered paid services like local phone numbers and a separate product for business customers.

The rise of WhatsApp and Zoom has led to a decline in Skype’s user base, with the service spiking to 40 million daily users in March 2020 as people sought ways to stay in touch during lockdown. Microsoft attempted to revamp the service with the launch of Teams in 2016, which eventually consumed Skype for Business.

The shift towards subscriptions is likely a response to changing user behavior and the need to adapt to emerging trends. Integrating its Bing search engine into Skype may also contribute to this decision. With over 36 million daily active users, Skype remains an essential tool for many people around the world.

As Microsoft evaluates its product strategy, changes are underway. Existing Skype phone numbers will continue to work, but those without a phone number will need to explore alternative options. The shift towards subscriptions marks a significant change in the way users interact with Skype, and its impact on the platform’s user base remains to be seen.