Facebook Video Chat v. Google Hangouts: It's No Contest

Michael Arrington

J. Michael Arrington (born March 13, 1970 in Huntington Beach, California) is a serial entrepreneur and the founder of TechCrunch, a blog covering startups and technology news. Arrington attended Claremont McKenna College (BA Economics, 1992) and Stanford Law School (JD, 1995) and practiced as a corporate and securities lawyer at two law firms: O’Melveny & Myers and Wilson Sonsini Goodrich... → Learn More

Wednesday, July 6th, 2011

One of the questions I had when I broke the news last week about the Facebook/Skype partnership: Would group video chat be part of the product, and if so would it be free?

The answer is no, there’s no group chat. Facebook says that one on one video chat is far more popular on Skype than group chat and so it makes sense to start there. But that’s misdirection – group chat on Skype requires that at least one user be paying $4.49/month for premium service. So not a lot of group video chat happens on Skype.

Google’s new hangout product is all about group chat, and it’s free. Up to ten people can use it at once. Google is smart about this, figuring out which person is talking and focusing the video stream on them until someone else takes over. If you want to have fun with a group of friends, or hold a dead simple video team call, Google Hangouts is perfect for that.

But Google Hangouts isn’t as good for one on one conversations. The whole setup of a hangout, sending out invites, is too complicated for that, Instead you can just initiate a Google video call directly to another user, and that works very similarly to Skype and now Facebook (Google should add a video chat button to user profiles, too).

If you want to have a one on one video chat, and your friend list is hosted at Facebook, the new Facebook video chat is a near perfect product. You can initiate a call right from the home page, or that person’s profile page. And there’s no need to register for Skype, or download the Skype client.

Both products require their own download, though. And neither work on mobile yet.

So for now, there’s really no comparison between the products. Facebook video chat is great to talk to friends one at a time. Google Hangouts is great for group chat. There’s no real overlap between the products at all.

But…I wouldn’t be surprised to see Facebook launch group video chat down the road. Until now Skype has kept up fees for premium/business users, and we’ve heard that it was always a key “future revenue” product that they pointed to during their IPO and buyout process. But few users seem to be willing to go premium, and their new owners may just remove that pay barrier sooner rather than later. When that happens I’d expect Facebook to launch that feature as well shortly afterward.

Company: Google
Website: google.com
Launch Date: September 7, 1998
IPO: NASDAQ:GOOG

Google provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers a plethora of online tools and platforms including: Gmail, Maps, YouTube, and Google+, the company’s extension into the social space. Most of its Web-based products are free, funded by Google’s highly integrated online advertising platforms AdWords and AdSense. Google promotes the idea that advertising should be highly targeted and relevant to users thus providing...

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Company: Facebook
Website: facebook.com
Launch Date: February 1, 2004
IPO: NASDAQ:FB

Facebook is the world’s largest social network, with over 1 billion monthly active users. Facebook was founded by Mark Zuckerberg in February 2004, initially as an exclusive network for Harvard students. It was a huge hit: in 2 weeks, half of the schools in the Boston area began demanding a Facebook network. Zuckerberg immediately recruited his friends Dustin Moskovitz, Chris Hughes, and Eduardo Saverin to help build Facebook, and within four months, Facebook added 30 more college networks. The original...

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Company: Skype
Website: skype.com
Launch Date: August 2003
Funding: $69.1M

Skype is a software application that allows users to make voice and video calls and chats over the Internet. Calls to other users within the Skype service are free, while calls to both traditional landline telephones and mobile phones can be made for a fee using a debit-based user account system. Skype was founded by Niklas Zennstrom and Janus Friis who were also the founders of the file sharing application Kazaa. Skype has also become popular for its additional...

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