Skype is an free VoIP (Voice over Internet Protocol) application which allows subscribers to make video calls, text chat and voice calls via an Internet connection on their computer. This service/application provides many of the features that most landline services provide, such as voicemail and call holding. The service does not inherently have the ability for users to add music to their on-hold calls, but this ability can be added through the use of a free application called Instant Watcher.
Install and launch the Instant Watcher application (see Resources). This application is designed to sync directly with the Skype program without the need to launch the Skype program independently.
Click the "Background Music" button to open the "Background Music" page.
Select "List," then "Add Files." This will open a file window on your computer for you to choose the music file(s) that you wish to use as hold music for Skype calls.
Select your music file(s), then click "OK." The next time you make a Skype call you'll need to use the Instant Watcher program to do so by clicking the Skype icon at the bottom of the main Instant Watcher window. Any call put on hold through this program will then play the music that you have selected.