Discord, a well-liked gaming chat app, announced on Thursday that it will enable producers to monetize their content through paid subscription tiers. Those in the United States who run Discord servers with hundreds of thousands of users can now charge their subscribers $3 to $10 per month for access to premium services and keep 90% of the proceeds.
The 150 million monthly active users of Discord Inc. spread out among millions of servers dedicated to anything from Ariana Grande to Fortnite. After starting out as a small-scale voice-chat program for gamers, Discord has expanded to become a central location for many kinds of online communication.
Nitro, a paid service that provides users with extras like personalized emojis and high-definition video streaming, is how the company makes money. With this new Server Subscription feature, the company will have more options for capitalizing on its robust user base. Click here to find out how does Discord make money.
What Is Discord?
Discord was designed as a means of communication amongst participants of online games. It allows for real-time chitchat across text, audio, and video. Any user with an Android, iPhone, Mac, Xbox, PlayStation, or PC can log in and use the platform.
By using Discord, members can form groups, or “Servers,” where they can interact with one another. It serves a purpose not dissimilar to that of Slack teams. The many channels available on these servers facilitate communication and collaboration on a wide range of issues.
Top Features of Discord
Discord provides an abundance of services geared toward its users, notably gamers. It can function with multiple modules, such as Nitro, server boosting, and others. These components include several tried-and-true upgrades that improve the overall quality of the bundled video, audio, and messaging services.
Personal profiles, larger uploads, an improved set of emoji, a dedicated support server, and many other features are among Discord’s many strengths. Here you will find out how does Discord make money.
How Does Discord Make Money?
Discord generates revenue from a variety of sources, including paid memberships and subscriptions, in-game microtransactions, and server boosting. Discord’s success can be attributed to its freemium business model.
In other words, the foundational platform is available at no cost. Premium features, however, can be purchased by power users and greatly improve their experience. Discord’s rapid expansion is thanks in large part to its freemium business strategy.
Thus, some community leaders have created flourishing ecosystems in and around their neighborhoods.
Businesses of all sizes, including Adidas, are joining the customer service revolution by embracing the messaging platform Discord. The success of the freemium model hinges on giving users a taste of the full product in the free tier.
Subscriptions
Discord’s premium subscription service generates the vast majority of the company’s income.
Nitro is their new monthly subscription that costs $9.99 or $99.99 annually. Nitro Classic, an other option, costs $4.99 monthly or $49.99 annually. You can see that a lot of Nitro’s features are geared toward fostering the kind of community that Discord advocates for.
Customers have the same cancelation rights as those of Netflix or any other modern subscription service.
Game Sales & Membership Fees
To take on Steam and other digital distribution platforms, Discord created its own game store in 2018. Gamers with a Nitro subscription could purchase Discord-only titles like Dead Cells and Into the Breach from the Nitro store.
The shop failed to take off and was shut down just a year after opening. In a short amount of time, Discord shifted to a new business model in which it collaborates with developers to offer games only on its platform.
Server Boosting
A community can improve their Discord Server’s features and performance by purchasing a server boost. The monthly fee for a server upgrade is $4.99. As previously mentioned, when Nitro subscribers elect to boost their servers, they will enjoy a 30% discount.
As soon as two users pay the monthly price, access to Level 1 is granted. Fifteen boosters are needed for Level 2, while thirty are needed for Level 3. All users of the server, paid or not, will have access to the premium features.
Discord Funding, Valuation & Revenue
According to Crunchbase, Discord has successfully completed 16 rounds of venture funding totaling $995.4 million. Among the many notable investors are Sony, Index Ventures, Greenoaks Capital, Dragoneer Investment Group, and dozens more.
After securing $500 million in Series H fundraising in September 2021, Discord is now valued at $14.70 billion. It is unknown exactly how much money the company makes each year, but estimates put the number at roughly $130 million.
Conclusion
Between matches, the players have a hard time communicating and coordinating with one another. But, ever since the inception of the dedicated communication platform for gamers to help them in so-called servers, things have changed.
Discord is the name of this online chat room. The company’s fantastic and fluid features have made it a household name among gamers. Discord began operations in 2015 with headquarters in the San Francisco Bay Area.
Because of its rapid expansion, Discord is now recognized as one of the world’s premier messaging platforms. Hope now you know how does Discord make money.
