Discord Business model – How Does Discord make money ?

How does discord make money? With millions of gamers across the multi-billion dollar gaming industry, it makes sense to have a digital space for these players to communicate with each other.

Currently, the most popular is Dicord. This is free chat software used for text, video and voice communication. However, because it’s free, users often wonder how Discord makes money. Certainly donation options.

With millions of gamers across the multi-billion dollar gaming industry, it makes sense to have a digital space for these players to communicate with each other.

Currently, the most popular is Discord. This is free chat software used for text, video and voice communication.

However, because it’s free, users often wonder how Discord makes money. Sure, there are donation options, but the vast majority of gamers don’t spend money on it.

Even so, it may not be enough to keep all those servers running. So how do you make the company profitable?how does discord make money?

Discord is not advertising,so how does it make money?

how does discord make money

Anyone who plays video games will not feel unfamiliar. The platform was launched in 2015 by Remesero Citron and Stanislav Vishnevsky, and currently has more than 140 million monthly active users and a market value of nearly 7 billion U.S. dollars.

The discordant rapid growth can be attributed to its lack of advertising-no one can spend money to promote their products, and users do not have to wait for dozens of advertisements. So, how does Discord make money?

Instant messaging and streaming together

To understand why people like discord, you first need to understand what makes it so popular. Discord combines instant messaging, audio and video communications, and streaming media broadcasts, just like Skype and Slack under the same roof. 

It is the perfect platform for anyone who wants to socialize (virtually) and participate in some kind of online activity at the same time.

Gamers will soon flock to discord, communicate with each other, and soon become the company’s main consumer base. But because of its function, Discord has successfully attracted fans from different communities and subcultures.

From music, entertainment, education, technology, almost any topic you can think of, there is a discordant server. 

Animal cross, animated series Naruto, international bachelor’s degree certificate for high school students, and programming language Python-no matter what your interests or hobbies are, there may already be a dedicated server.

Discord business model

Discord operates under a “free” business model. This means that the platform can be downloaded and used by everyone for free, but you can also get additional premium subscriptions. It has two main revenue streams.

Its main source of income is its premium subscription, Discord Nitro. Faithful and discordant users of 24/7 chat and streaming on the platform may want to consider Discord Nitro because it has upgraded features to enhance the user experience.

These features include HD high-quality video streaming, larger file upload sizes, and personalized avatars and tags.

Discord Nitro is priced at $9.99 per month or $99.99 per year.Also There is a money-saving version of Discord Nitro called Nitro Classic,which costs $4.99 per month or $49.99 per year.

In October 2018, Discord launched its own game store Nitro Games, similar to Microsoft Xbox Game Pass. Users can download the game to the library and install it on the device at any time. However, in October 2019, only one year after Discord was released, Nitro Games was closed.

Soon after, Discord launched a second source of revenue. After suspending Nitro Games, it launched a developer portal where game developers can develop their own games and publish them entirely on Discord. 90% of each game sold will be returned to the developer, with Discord accounting for 10%.

Apart from this, Discord has no other revenue-generating channels. It is a platform with no ads and no pop-up ads. As of this writing, the company’s official merchandise store is still under development.

Does Discord really make money?

how does discord make money

For a platform with millions of active users, Discord’s source of revenue seems a little trivial. So, does the company really make enough money to sustain itself? How much is there?

Discord’s success has attracted the attention of venture capital firms and large technology companies. In the past few years, it has received funding from large companies to enable it to continue operations. 

From 2016 to 2019, Discord raised millions of funds from technology giants and investment groups, including WarnerMedia (formerly Time Warner) and Tencent.

Also read : Internet Money Can Change Your Life | Learn How To Make Money Online

The company’s revenue in 2016 was 5 million U.S. dollars, 2017 was 10 million U.S. dollars, 2018 was 30 million U.S. dollars, and 2019 was 45 million U.S. dollars. In 2020, the company’s revenue has tripled to $130 million. 

However, according to “Wall Street Journal” data, despite its impressive numbers, Discord admits that it is still unprofitable.

In March of this year, there were reports that Discord was in talks with Sony and Microsoft for possible acquisitions. 

According to reports, Microsoft offered the company $10 billion, but co-founder and CEO Jason Citron (Jason Citron) also stated that they “really received “a lot of bids” from other parties. 

Some media reports also revealed that Discord may be paying attention to the IPO, although the company has not confirmed this.

How Does Discord make money ?

how does discord make money

How does discord make money: Well, Discord has over 87 million users. Connected to games, Spotify and Twitch, your friends can see what you’re playing, listening to, and streaming. It’s a great value proposition, one person who uses it leads to a friend who uses it, and then several people use it.

That said, the company does not intend to use advertising to support the platform. Also, unlike other online programs, we do not sell your data. Instead, make a profit by using the following policy:

Cosmetics

Although completely optional, Discord offers cosmetic customization features such as sound packs, skins, and emoji. These don’t make the Discord experience good or bad for users, but they make it more enjoyable. In addition, customers are reassured to support the team and its platform.

Product

Discord has all kinds of products. Trendy T-shirts, stabbed sweatshirts and hats are all available for purchase. Of course, the vast majority of users aren’t involved in this, but their enthusiastic fans provide the company with a little extra cash.

Nitro

Discord Nitro is a subscription service offered by the company for $ 4.99 per month and $ 49.99 per year. Nitro subscribers can also upload files up to 50 MB, create custom emojis, animate avatars, and share screens in 1080p. Users will also receive their own Nitro badge to promote their support.

Shop

Although the relatively new Discord has a store, where anyone can buy games.People who subscribe to Nitro receive free games every month, but anyone can buy titles from platforms like Steam.

All Discord games are carefully selected to ensure that your storefront isn’t overwhelmed with spam games like Steam. Instead, gamers can make sure that what they buy is of high quality. The platform takes a small reduction from purchases and the remaining funding goes to the developer or issuer.

Venture capitalist

Despite the all of the above options,Discord is also funded by venture capitalists. In fact, in December last year, the company announced an investment of $ 150 million, with an overall valuation of $ 2.05 billion.

The funding round was led by Tencent, Firstmark, IVP, Index Ventures, Technology Opportunity Partners, and Greenoaks Capital.

Yes Of course,these funding options are just the beginning. Discord can reveal more ways users can contribute over time.After all the company is still in its infancy.

Fortunately, as far as we know, Discord doesn’t want to change its free service. Anyone can use the voice chat and text chat platform completely free of charge.

Developers can also benefit from features such as Gamebridge, which allows you to connect your game to the Discord platform.

Also, Discord’s user base grows only thanks to these free services. Word-of-mouth is powerful, and as users continue to get involved, they bring in friends.

Some of those users will need to convert to Nitro subscribers and purchase the item. In addition, other chat platforms charge for most of these services, so there is little incentive to deviate from Discord in the first place.

Also read : How You Can Make always Money ? 10 Millionaire Things Rich People Don’t Want to Tell You

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