How Does Discord Make Money?

What is Discord's business model and how does Discord make money when the app offers so much for free? Is Discord's business model sustainable?

The argument that Discord is one of the best, if not the best, VoIP app on the market for Windows, Android, Linux, iOS, and even Mac is pretty solid.

This communication platform is convenient, especially for people invested in gaming and gaming communities.

However, the question is: How does such a successful application thrive while being absolutely free? How does Discord make any money at all?

It’s something that a lot of people have been wondering about.

And it is something that they should worry about because usually, the companies that have no public business plan in place resort to sketchy methods for profit, such as selling private user data or other useful information.

But, that doesn’t seem to be the case with Discord. Nor was that ever in the development team’s plan.

Here is what was originally evisaged and how Discord is bringing in profits.

A Free Communication Platform For Everyone

Discord was supposed to be a completely free communication platform for any audience. And that is exactly what it is today, with just a bit more focus on gamers (the gaming community). Still, it remains free, rich with features, and intuitive.

It’s safe to say that the development team has definitely delivered in every aspect.

Nowadays, a lot of people use this application daily, and many people are reliant on it.

Discord is claiming an active user base of more than 250 million people. That is a huge number!

So, how is the company capitalizing on all of those people if all of them use it for free?

Funding

Discord does have a business plan in place, but it’s not a plan that directly focuses on profit. Because of this, the company was looking at funding options once it got a bit more popular within gaming communities back in 2015, which was the year the app was publicly released.

In 2016, Discord got funding of about $20 million from WarnerMedia. At the time, that was more than enough to help the application grow further.

As the potential of this new platform became more obvious, various companies offered more funding. In 2018, Index Ventures, IVP, Tencent, Greenoaks Capital, and a few others raised funding of about $150 million.

Over the years, additional companies invested in Discord.

One example is Microsoft connecting their Xbox Live service with Discord, which allows users to communicate with Xbox users through the program.

In March 2021, multiple companies took an interest in completely buying out Discord. But, at the time of writing, the most probable contender is Microsoft, coming in with a potential investment of $10 billion.

Current Business Plan In Place

Even without Microsoft’s move to buy out Discord with ten billion dollars, the program can exist without the help of investment or funding.

At the time of writing, Discord does have a business plan in place, and it comfortably supports the company’s development and support teams and also the servers.

It is not a plan that maximizes profit, but it does bring revenue to the table.

One of the ways Discord is making money is with Nitro.

Nitro

Nitro is a premium feature available to every user. It’s by no means mandatory, but it does provide users with some additional benefits.

Nitro costs about $10 a month. With it, users have the option to use custom or animated emojis, an animated profile picture, 1080p 60FPS streaming, up to 100MB upload size for files, and a few additional benefits on top.

It’s not a bad offer for $10, but it’s also not something that most people can’t live without. On the whole, it’s a paywall that the majority of users won’t see a need to cross. So, this leads to the next point on how Discord is making money.

Server Boosts

With every Nitro subscription, a user also receives two Server Boosts and a discount offer for future boosts.

What exactly is a Server Boost? We can explain! Discord offers those same benefits of a Nitro subscription with a Server Boost, but those benefits are tied to the server, not one individual user.

In other words, every member of a boosted server will have access to better streaming quality, larger file upload size, etc.

However, boosting a server is a lot more expensive than just $10. In fact, it costs about $75 to acquire all the features that come with Nitro. Fortunately, individual users can pool together and invest their boosts toward a server, thereby sharing the cost.

Future Of Discord

Microsoft’s suitcase of ten billion dollars will surely have a major impact on the future of this application, and it’s safe to assume that some people have concerns about this. A corporation meddling with an open-source project can conjure thoughts of many unwelcome changes in the minds of existing users.

However, Microsoft is known for providing companies with freedom regarding their products or services. So, even if Microsoft does own Discord, it probably won’t have any major impact on the platform. At least, not an impact that the average user notices.

The future is still bright for this app as it will continue expanding over the years with its ever-growing community.

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Branko Gapo

Keeping up with the incredibly fast evolution of computer technology is impossible. Branko aims to use his knowledge on this matter to share news and information on all the latest essential technological innovations and advancements.