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The rise of Discord: A brief overview of the popular communication platform
Discord is a popular communication platform that has become a staple for many gamers, streamers, and communities. The platform offers a wide range of features, many of which are available for free. This blog post will explore the key free features that Discord offers to its users, how the platform makes money, its competitors, funding and valuation, and potential future revenue streams.
Discord Business and App Features:
Discord is a popular communication platform with a large user base. The platform has 14 million daily players, 315 million messages sent a day, and 250+ million active users. This shows the success and popularity of the platform’s business.
Discord uses a freemium business model, which means that basic services are free for users, but premium features can be accessed by paying additional charges. The platform uses a proprietary voice-over-internet-protocol (VoIP) application that offers high-quality audio and minimal latency. Discord offers many features such as:
Free Voice Chat Services
One of the main features of Discord is its free voice chat services. Users can connect with their friends and other members of their server through voice chat. Discord uses a proprietary voice-over-internet-protocol (VoIP) application, which provides high-quality audio with minimal latency.
Friends List and Customizable Notifications
Discord also allows users to add as many friends to their Friends List as they want. The platform also offers customizable notifications, so users can choose when and how they receive updates and messages.
Anonymous and Secure
Discord requires minimal CPU usage and it is easy to use on both desktop and mobile devices. Additionally, anyone can create an account on Discord, and it offers ultimate privacy. There’s no requirement to disclose the identity to others, and users can keep themselves anonymous. Discord also offers client-server communication encryption that provides a high level of security and protection against DDoS attacks and keeps users’ IP addresses safe.
Additional Features
Other features of Discord include in-game overlay, multiple channels, custom hotkeys, modern text chat, direct messaging, and smart push notifications. Users can also add bots to their Discord server if they want to enhance functionality. In fact, many cool bots are available on servers created by different developers.
How Does Discord Make Money?
Discord makes money through a variety of revenue streams, including premium subscriptions, fees from game sales and memberships, as well as server boosting. The platform offers two subscription tiers:
Subscription Packages: Nitro and Nitro Classic
One of the main ways Discord makes money is through its subscription packages. The platform offers two subscription tiers: Discord Nitro and Discord Nitro Classic. Nitro subscribers get access to a range of perks, such as improved video quality, custom emojis, and an animated profile picture. Nitro Classic subscribers get access to some of the same perks, but at a lower price point.
Server Boosting and Distribution Fees
Another way Discord generates revenue is through server boosting. When a server is boosted, it gets access to additional features, such as increased file upload size and the ability to use custom emojis from other servers. Discord also generates revenue through distribution fees from game stores. When a game is purchased through Discord’s store, the platform takes a small cut of the sale.
Virtual Events and Merchandise
Discord also generates revenue through virtual events and merchandise. The platform offers a ticketing system for virtual events, such as concerts and conventions. Users can purchase tickets to these events directly through Discord. Additionally, Discord offers a range of merchandise, such as t-shirts and stickers, through its online store.
Cost Centers and Risks:
Discord incurs various expenses, such as content moderation and server infrastructure. However, the platform has received criticism for its approach to privacy and content moderation. Some users and critics have raised concerns about the presence of hate speech and other problematic content on the platform and feel that Discord needs to do more to address these issues.
Discord Funding, Valuation & Revenue:
Discord has successfully amassed substantial funding. Notable contributors include Sony, Index Ventures, Greenoaks Capital, and Dragoneer Investment Group, among others. By September 2021, Discord’s fundraising efforts had reached a considerable total of $995.4 million, garnered across 16 venture funding rounds. This funding success reflects in the company’s valuation, now standing at an impressive $14.7 billion.
The company chooses to keep its revenue figures private. Nevertheless, it’s speculated to generate an appreciable annual revenue, roughly estimated at around $130 million. Given Discord’s ongoing surge in popularity and growing user base, the company seems poised to venture into novel avenues for monetization. This could potentially result in an upward trend in its revenue graph.
Discord’s Competitors:
Discord faces competition from other communication platforms, such as Slack and Teams. However, the platform has carved out a niche in the gaming community that sets it apart from its competitors. Looking to the future, Discord may explore opening new revenue streams, such as advertising or sponsored content. Additionally, the platform may look to grow its user base beyond just the gaming community by appealing to other types of communities and interest groups. The platform may also look to monetize its Gamebridge feature, which can help integrate the app in games and offer auto-match players in voice channels, easy audio settings control, positional audio to enhance players’ distribution, sharing videos, GIFs and screenshots, and partner-like perks to build up a community.
Future Revenue Streams:
Discord may explore opening new revenue streams in the future, such as advertising or sponsored content. Additionally, the platform may look to grow its user base beyond just the gaming community by appealing to other types of communities and interest groups. The platform may also look to monetize its Gamebridge feature, which can help integrate the app in games and offer auto-match players in voice channels, easy audio settings control, positional audio to enhance players’ distribution, sharing videos, GIFs and screenshots, and partner-like perks to build up a community.
The future of Discord: Potential opportunities and challenges ahead
Discord, a widely appreciated communication tool, boasts of its extensive features, some of which are accessible at no cost. It hosts a vast user community – 14 million daily gamers, 250+ million active users, and a whopping 315 million daily messages – a testament to its success and widespread adoption. Revenue generation for Discord spans multiple channels such as subscriptions, server boosting, distribution fees from game stores, merchandise sales, and virtual events. Yet, the platform grapples with content moderation and privacy concerns. Armed with its multifaceted features and robust user base, Discord remains a dominant force in the gaming and communication sector. To sustain future growth, it must address its content moderation and privacy challenges. Having secured substantial funding from prominent investors, and being highly valued, the company is thought to be making a substantial annual turnover. As Discord’s popularity and user base continue to expand, the company could explore novel ways to monetize its platform, potentially driving up its revenue.
