How Does Discord Make Money: One of the most famous software among gamers is the Discord application. Discord is mostly free to use and provides seamless voice/audio communication between users through channels of servers. This feature especially has made Discord one of the most widely used VoIP (Voice over Internet Protocol) applications in the world.
The Discord application was originally developed in 2015. It has been made available cross-platform, ranging from Windows OS to Android mobile phones. Its popularity has made the developers release the app in 27 different languages across the world.
What Does Discord Support?
- Chats and text messaging alongside pictures that can be attached.
- Voice Communication via servers created by users with end to end encryption.
- Allows overlay function while using applications and games to give quick communication access.
- Servers can be created for various requirements according to taste and preferences, such as dating servers, informational servers, cryptocurrency, etc.
- It supports various platforms such as macOS, Windows, and Android, making it easily accessible.
- Full control of privacy setting, thus allowing the user to moderate the audience/member of the content that is to be shared on private servers.
- Provides an alternative to stream applications, such as Twitch, by allowing users to GO LIVE to stream live gameplay action and much more.
- It has a premium version called Discord Nitro, which allows unlimited access to additional features as well as improves the interface overall.
Discord Vs. Other VoIP Platform
Discord is super easy to use and provides a lot of premium features for free as compared to other applications such as Skype and TeamSpeak. This is the reason most users opt for Discord over the other VoIP software. The security patches for Discord are more secure than other applications, too. Hence providing more privacy and protection against data theft. The various reasons why Discord is at the pinnacle of the VoIP application market are illustrated through the diagrams below.
The above comparison chart compares the features of all the three application that is available for free and rates them on how efficient they are to use.
The above Venn-Diagram shows the unique features and strong features of each application as well as their common grounds. The choice is yours to make after seeing the comparison. Although we all know who the winner is.
Business Model of Discord
Discord uses a pretty simple business model, which is the freemium model that allows the user to access its basic features for free but for the advanced features, the user has to pay. As of 2017, the Discord application has opted out from generating revenue by using ads and other marketing strategies due to its popularity. It has $30m in venture capital seed funding for the maintenance and as a backup plan if the Discord market falls below its estimated venture target.
Discord boasts an overwhelming user base of more than 250 million as of in the current year. The net worth of Discord was estimated at around $1.7 billion in 2018, with 150 million users in play. Since then, 100 million or more users have joined the user tally of Discord, which has expected to push up the net worth as high as $2.2 billion.
This has been possible by the smart business model strategy used by Discord in comparison to other companies. Features such as Streamkit and Rich Presence are free of cost in this application which attracts more and more users (mainly gamers) as other companies charge for these.
How Does Discord Make Money
The Discord application prevails in the market due to two of its most stringent and noticeable strategies.
- It is against in-app advertisements on the chat platform, which is very much appreciated by users. This attracts more and more users because they view Discord as a hassle-free and ad-free application.
- It is strictly against the selling of user data to other companies for surveys and future market plans. This has led to the strengthening of the data privacy sector of this application along with a strong non-crackable source code.
These two strategies followed by Discord attract maximum users from around the world and even convinces other users to shift from other VoIP applications to Discord. This creates money-making opportunities for the application.
- Optional Customization/Visual Items: The app provides customization of chat style and emojis to enhance the visual appearance of the interaction itself. Streamers and enthusiasts are very likely to buy these products.
- Discord Merchandise Store: Discord has its own market for merchandise and custom products. These are specially made for fans and very popular among gamers.
- Discord Nitro: This is the premium version of Discord that unlocks special and advanced features of the app for selective users. This topic will be discussed in detail.
Although the Discord merchandise store is under construction in their virtual application, there are many other third-party stores that distribute their merchandise and gifts. Currently, Discord has closed down the distribution of their merchandise but is expected to start re-delivering them soon as it helps them to boost their revenue stream.
The premium subscription-tier of Discord is the Nitro. It provides an enhanced experience for regular Discord users.
- More Emoji Power: Use custom and animated emojis anywhere.
- Customized Profile: Rep an animated avatar and claim a custom tag.
- Support a Server: Get 2 Server Boosts and 30% off extra Boosts.
- Rep Your Support: The profile badge shows how long you’ve supported Discord.
- Bigger Uploads: 100MB upload size for high-quality file sharing.
- HD Video: Hi-res video, screen share, and Go Live streaming
The above-given features are the latest Nitro features provided by Discord, straight from the application.
The Nitro version is $9.99 per month or $99.99 per year, depending on the user preference. It even has the option of gifting Nitro to other users.
What Can Be Discord’s Future Revenue Strategies?
Discord’s current financial situation is pretty strong, evident from the net worth it has been able to gather the past couple of years.
Though the market for Discord has been kept afloat by its large user base and it’s various paid features like Nitro, it has to plan for future revenue streams. New and better applications may be developed, and Discord has to do its best to keep its current user base intact and attract even more.
Some of the strategies to be adopted by Discord are as follows:
This is the integrated version of Discord, where the app’s features are in-built within the game to provide ease of accessibility. It is promised to be released in a better version by the Discord developers.
Game Bridge will boost the Discord economy as it provides many features such as:
- It is an auto matches player in voice channels.
- Auto creates channels/servers for temporary use during gameplays and workshops.
- Easy videos, photos, and GIFs sharing.
- Easy control of Audio
- Environmental Augmented and Positional Augmentation of Audio sound for a better in-game experience.
Game Revenue Sharing
Discord has been working on creating partnerships with different companies such as Spotify. This allows users to share custom playlists as well as see the activity of other users on Spotify.
These partnerships can be extended with gaming companies as well as betting sites. This will generate revenue for this application through the referrals when the user buys a game related to the company’s trademark or any feature of it. This referral would be provided by Discord itself to its users.
In previous centuries, the virtual aspect of gaming and online work had been speculated only. But the reality has changed, and applications like Discord have helped users to stay in communication in this fast-paced virtual world.
This application is still at the grassroots level of development and has much more in store for us. It has great potential and a very supportive user-base that has made the success it has found today possible.