The impact of Facebook-Skype Integration and Google+ Hangouts on Video Chat

by Parks Associates | Jul. 7, 2011

With Facebook Video Calling powered by Skype and Google+'s Hangouts feature, is video chat poised for huge growth? I got some questions from a reporter yesterday on this, so I thought I'd share the Q&A:

We've had video chat for quite awhile, both at the high end (videoconferencing) and on mobile (the iPad). However, video chat currently seems to be mainly a niche service - it really played out well in 2010 when Europe was covered by a cloud of volcanic ash.

Kurt: One thing to keep in mind is that video chat is not a niche application. In a survey we conducted in 2010, 20% of consumers said that they were conducting video chats on at least a monthly basis, with 12% doing them weekly. And, the rates were significantly higher among consumers in a younger demographic.

Does the entry of Facebook and Google into the video chat market add up perhaps to a tipping point for this service? Is this the moment at which video chat starts to go mainstream?

Kurt: I certainly think that removing a barrier to use (such as having to click on one more portal like Skype, having to look up a contact, etc.) is going to push greater use of video chat.

If the answer is yes, what are the drivers? A combination of Facebook's and Google's presence and the increasing capability of tablets to support video chat, perhaps?

Kurt: As I mentioned above, I think removing any unnecessary steps (such as finding a contact’s address) by simply connecting to them via a known service is going to increase use. And, yes, two-way cameras on portable devices and the ease of integration that FaceTime has had with Skype, for example, will certainly boost usage.

Or will video chat once again fade into the background as a niche service used only when necessary? If so, why?

Kurt: I can’t say that it’ll be something that’s used all of the time among all people. However, you think about communicating with friends or family during special events (birthdays, holidays, the family reunion where somebody can’t make it in person, a wedding, etc.), I do think that this will promote greater use.

What are the pros and cons of video chat that would either help it take off or hinder its growth?

Kurt: I guess one question would be the basic psychographics of a person doing the communicating. One question I have is whether the younger generation in particular – who have become more accustomed to faceless communication – will increase their use of video chat because of this. I guess I’m thinking of a typical teenage scenario where a boy asks a girl to the high school dance. It’s my understanding that hook-ups and break-ups are occurring more via text. I think that’s kind of sad – a guy should be required to man up and dial the woman. So, would you have a video chat with a person who’s a love interest? How will dating services implement this? Can you imagine face-to-face talks via video chat before the actual coffee shop meeting? Kind of an intriguing thought.

These may include the need to ensure you look presentable; prevent participants from fiddling with things on their desks or looking around the room or whatever other physical actions they may perform during a phone call; and perhaps the fact that usually the video chat camera is so low that there's little chance of eye contract during a video chat.

Kurt: Absolutely. Again, are young people in particular losing the ability to make eye contact in a conversation, or remain non-distracted during a chat? Maybe these will occur in such “bursts” that it won’t matter.

Is there enough broadband capacity to support video chat? Or will we see rates go up or new tiers introduced, for example?

Kurt: I have not heard that bandwidth consumption is an issue with video chat.


Tags: Europe, Google

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