uploads///Facebook Price

Facebook to Compete with Microsoft’s Skype

By

Jan. 6 2016, Updated 10:02 a.m. ET

Video calling

Facebook (FB) is all set to release its new video-calling feature on its mobile messaging app, which will compete with Google (GOOG), Apple (AAPL), and Microsoft (MSFT).

With the launch of voice calling in 2015, WhatsApp made an addition of 200 million users in a period of three months. Facebook is expecting the same response by incorporating the video-calling feature into WhatsApp.

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WhatsApp dominates the messaging app market

With 900 million users, Facebook’s product WhatsApp is dominating other mobile messing apps. It’s followed by Facebook Messenger and Tencent’s WeChat with 700 million and 650 million users, respectively. WhatsApp is quite popular in Europe (EFA), Latin America, and Asia. As WhatsApp closes in on 1 billion monthly active users, Facebook could announce some monetization initiatives the app.

The video-calling feature will be available for both iOS and Android versions of the app, unlike the debut of the voice calling feature, which was initially rolled out on Android platforms. Moreover, users will be able to choose the front or back camera to use the video-calling feature.

Skype dominates the video communication segment and is recognized as the most reliable source for face-to-face conversation. Facebook Messenger’s user growth remains stagnant. However, the company could boost its growth if people were to migrate from Skype or Apple’s FaceTime to WhatsApp.

Facebook and Twitter (TWTR) are part of the Vanguard Information Technology ETF (VGT). They account for 5.4% and 0.35% of the ETF, respectively.

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