Discord Business Model: How Discord Makes Money

The Discord business model is based on a subscription model. This popular communication platform has taken the gaming world by storm. With over 150 million monthly active users, Discord has become the go-to app for gamers looking to connect, collaborate, and share their passion for video games. Let’s explore the fascinating world of Discord and

Gary Fox

Discord Business Model Canvas

Discord Business Model: How Discord Makes Money

The Discord business model is based on a subscription model. This popular communication platform has taken the gaming world by storm. With over 150 million monthly active users, Discord has become the go-to app for gamers looking to connect, collaborate, and share their passion for video games. Let’s explore the fascinating world of Discord and uncover what makes this platform so special.

Key Facts About Discord

. Company name:
Founders:

Jason Citron and Stan Vishnevskiy

Launch date:

May 13, 2015

Year founded:

2015

Company CEO:

Jason Citron

Headquarters

San Francisco, California, USA

Number of employees
Ticker symbol

privately held

Annual revenue

$207 million (2023)

Profit | Net Income

not disclosed

Market Cap

privately held

Useful Links for Discord

Globe
Facebook 2
Tik Tok
Social
Social Media 2
Business
Pinterest
Youtube
Social 2

Number of registered users

YearNumber of registered Discord users worldwide% increase
2023563 million users23.46%
2022456 million users23.24%
2021370 million users23.33%
2020300 million users20.00%
2019250 million users25.00%
2018200 million users122.22%
Source: Statista

Key Discord Statistics 2024

  • Discord daily active users are estimated at 29 million in 2024.
  • Discord monthly active users count at 196.2 million as of January 2024.
  • In 2023, Discord annual revenue amounted to $207 million approximately from its paid subscriptions.
  • Discord paid users count at 614 thousand approximately in 2024.
  • $15 billion is the estimated Discord valuation as of December 2023.
  • Discord demographics – 65% of Discord users are male, and the remaining 35%are female.

Discord User Stats 2024

  • Discord has 196.2 million monthly active users in 2024.
  • Discord has more than 29 million daily active users.
  • Discord currently has approximately 614 million registered users as of January 2024.
  • Discord saw a rise of 107 million registered users from 2022 (456 million) to 2023 (563 million).
  • The average US user spends 280.6 minutes (approximately 4 hours and 40 minutes) on Discord daily.
  • Discord saw approximately 245 million monthly website visits in 2024.
  • At the start of 2024, Discord saw a 16% growth in monthly active users.
  • 78% of Discord users claim to use the app for non-gaming activities.
  • Discord servers host 4 billion minutes of conversation every day.

A Brief History

Discord was founded in 2015 by Jason Citron and Stan Vishnevskiy, who saw an opportunity to create a better communication tool for gamers. The platform quickly gained popularity among the gaming community, and it has since expanded its reach to include various other communities and interest groups.

  • 2015: Discord is launched, initially focusing on text and voice communication for gamers
  • 2016: Discord introduces video calling and screen-sharing features
  • 2017: Discord reaches 45 million registered users and 8.9 million daily active users
  • 2018: Discord launches its game store and Nitro subscription service
  • 2019: Discord expands its focus beyond gaming, targeting various communities and interest groups
  • 2020: Discord reaches 100 million monthly active users
  • 2021: Discord raises $500 million in a funding round, valuing the company at $15 billion
  • 2022: Discord introduces Stage Channels, a feature for large-scale audio events

Who Owns Discord

Discord is a privately held company, with its ownership divided among its founders, employees, and investors. The company has raised over $980 million in funding from various venture capital firms, including Benchmark, Greylock Partners, and Tencent Holdings.

How Discord Makes Money

Discord’s revenue model taps into its large user base by offering enhanced features through premium subscriptions and partnering with other companies.

The Discord Revenue Model

Nitro Subscriptions

Discord’s primary revenue stream comes from its subscription service, Discord Nitro. Priced at $9.99 per month or $99.99 per year, Nitro offers users additional features beyond the standard functionality of the platform. These features include higher-quality live streaming, more file upload capacity, custom emojis, and the ability to use animated avatars and custom tags. There is also a cheaper option, Nitro Classic, which includes fewer features at a lower price point. This subscription model is attractive because it enhances user experience and engagement without disrupting the basic free services that initially attract users to the platform.

2. Server Boosting

In addition to personal subscriptions, Discord allows users to purchase “boosts” for servers, which provide collective benefits to communities, such as higher audio quality for voice channels, more emoji slots, and better streaming capabilities. This encourages community members to contribute collectively to enhance their server’s functionality, creating a direct revenue stream from engaged user groups.

3. Game Sales and Distribution

Although Discord has scaled back its direct involvement in-game sales through its storefront, it continues to operate a game distribution platform where users can buy games. Discord also offers a developer portal where game developers can manage their games, build communities, and expand their reach. This serves as a potential revenue stream and strengthens its ecosystem, making it more attractive for developers and users alike.

4. Partnerships and Collaborations

Discord has entered into various partnerships with game publishers and other companies to integrate services directly into its platform. For example, partnerships with companies like Xbox have allowed users to link their Xbox accounts and display their game activity on Discord, enhancing user engagement. These collaborations can potentially include licensing agreements, promotional deals, and other partnership revenues.

5. Merchandising

Though a smaller portion of revenue, Discord also sells branded merchandise. This includes apparel and accessories that feature Discord’s branding and icons, tapping into the loyalty and identity of its user base.

Discord Business Model Patterns

Discord Business Model Canvas

Discord Business Model Canvas

The Discord Business Model

Customer Segments Of The Business Model Canvas

Customer Segments

The Discord business model caters to cost-conscious shoppers and other segments including:

  • Gamers – Discord’s primary focus and largest customer segment
  • Content creators – Streamers, YouTubers, and other online content creators
  • Communities – Various interest-based groups, such as art, music, and technology enthusiasts
Value Proposition Of The Business Model Canvas

Value Propositions

The Discord business model focuses on the following value propositions:

  • Seamless communication – High-quality voice, video, and text chat for effortless interaction
  • Customizable servers – Users can create and tailor servers to their specific needs and interests
  • Cross-platform accessibility – Discord is available on desktop, web, and mobile, ensuring users can stay connected wherever they are
Channels

Channels

The Discord business model leverages the following channels to reach and engage with its customers:

  • Website – Discord’s official website serves as a central hub for information and downloads
  • Mobile apps – Discord’s mobile apps for iOS and Android provide on-the-go access to the platform
  • Partner websites – Discord partners with gaming websites and communities to promote the platform
Key Relationships Of The Business Model Canvas

Customer Relationships

The Discord business model uses methods to minimize costs associated with customer relationships:

  • Community engagement – Discord actively participates in and supports user-created communities
  • Customer support – Discord provides comprehensive customer support through various channels
  • User feedback – Discord actively seeks and incorporates user feedback to improve the platform
Key Activities Of The Business Model Canvas

Key Activities

The Discord business model includes the following key activities:

  • Platform development – Developing and maintaining the Discord platform and its features
  • Community engagement – Providing customer support and engaging with the Discord community
  • Partnership management – Partnering with game developers, publishers, and other companies for promotional activities
  • User experience optimization – Continually innovating and improving the Discord user experience
Key Resources Of The Business Model Canvas

Key Resources

The Discord business model relies on several key resources to operate effectively and maintain its competitive position:

  • Technology infrastructure – Discord’s servers, software, and other technical assets
  • Human capital – Discord’s skilled workforce, including developers, designers, and support staff
  • Brand reputation – Discord’s strong brand identity and reputation within the gaming and online communities
Key Partners Of The Business Model Canvas

Key Partners

The Discord business model relies on a diverse network of key partners that play a crucial role in supporting the company’s operations, growth, and success. These partnerships include:

  • Game developers – Discord partners with game developers to integrate the platform into their games
  • Content delivery networks – Discord works with CDNs to ensure fast and reliable content delivery
  • Payment processors – Discord partners with payment processors to handle financial transactions
  • Merchandise suppliers – Discord works with suppliers to produce and distribute branded merchandise
  • Investors – Discord’s investors provide financial support and strategic guidance
Revenue Streams Of The Business Model Canvas

Revenue Streams

The Discord business model generates the following revenue streams:

  • Nitro subscriptions – Premium subscription service offering enhanced features and perks
  • Server boosting – Users can purchase boosts to unlock additional features for their favorite servers
  • Game store – Discord’s digital game store offers a selection of games for purchase
  • Merchandise sales – Discord sells branded merchandise, such as clothing and accessories
  • Partnerships and sponsorships – Discord partners with game developers, publishers, and other companies for promotional activities
Cost Structure Of The Business Model Canvas

Cost Structure

The main costs associated with the Discord business model include:

  • Technology infrastructure – Maintaining and upgrading Discord’s servers, software, and other technical assets
  • Employee compensation – Salaries and benefits for Discord’s workforce, including developers, designers, and support staff
  • Marketing and advertising – Expenses related to promoting the Discord platform and attracting new users
  • Partner and service provider fees – Royalties and fees paid to partners and service providers, such as content delivery networks and payment processors

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