How does Discord Make Money in 2020

Discord is an online application for gamers to communicate. We all want interruption-free chatting while gaming. Discord gives an excellent platform to communicate via chat, audio or video with playmates. This chat application is free, safer, not heavy and has premium features.

Discord is available for iPhone, Android, Play station, MacOS and Desktop or any browsers. However, it’s made for gamers primarily and used by other groups for art, music like YouTube and Spotify. Discord provides users to communicate themselves through servers, called “Discord Server”.

A user can create a server for free and invite others to join. The user needs an email address and creates a username to register. After that, discord allows them to connect to the gaming service. Discord was officially released on May 13, 2015, by two gamers named Jason Citron and Stan Vishnevskiy.

Gamers design discord for gamers. Now it has over 100 million viewers of different ages. Game developers publish their games in discord. Discord charges 10% for each sell and developers get 90% of it. Discord revenue in 2020 is $120 million.

What is Discord?

Discord is nothing but an instant messaging ad-free platform designed for gamers. They communicate via text message, voice calls, video calls, shares media in private chats on servers. Servers are a discrete collection of channels.

A single user can create up to 100 servers. They send links or invitations to others to join the chat room. But the access to the channels is limited for certain users. Because of free of charge and easy to use, discord has caught the attention of gamers.

Discord has its own “trust and safety team” to measure security and risk. Additionally, it has customer service and monitoring support service to clear unwanted activities. Discord ensures the user’s private information to leak.

Discord vs. Skype vs. Team Speak vs. Zoom

Discord becomes popular when it comes to communication. It is giving tough competition to others like Skype, Zoom or TeamSpeak. So which is the best application to chat? Users may find some interesting facts about these VoIP (Voice Over Internet Protocol) apps here.

If we talk about Skype, it needs a bandwidth of 100 kbps to provide constant data flow. In comparison, discord recommends less bandwidth of 64 kbps.

Discord has storage of 100 megabytes and free to host. On the other hand, you have to pay monthly or yearly in TeamSpeak. Zoom has 1GB of online storage.  Also, discord has an advanced Application Programming Interface (API).

Most importantly, except discord, the other apps are not dedicated platforms for gamers. You can even see the mutual servers in discord if you are connected with friends. It uses opus audio format for real-time interactive communication at low latency.

Discord Business Model and App Features

Discord is a hustle free communication medium. It has 14 million daily active players, around 530 million messages sent per day. Discord has a Freemium Business Model. Here users get service for free. If additional features are required, you need to pay to get premium features using the nitro subscription package.

The following features are offered by discord:

  • It is a free chat service.
  • You can connect over million friends in a single server.
  • You can schedule messages in discord for a particular date and time.
  • It gives you PC support also in mobiles.
  • It uses low latency for smooth interaction.
  • You can share screens.
  • If discord finds any unauthorized activity, you can be banned.
  • You can add bots to your server. Assign the role to the bots, like sending welcoming messages to the newcomers.
  • You can create multiple channels within a single server.
  • Provides in-game overlay, custom hotkeys.
  • Smart push notifications.

How Does Discord Make Money?

As discord provides the user free use, it depends on the funding. This is an even ad-free app. Discord doesn’t do advertisements, thus maintains the security of users/clients.

The current discord revenue model has shown a huge sale of games in discord. So how does Discord make money? The answer lies here. Discord introduces three resources to make money while interrupting the service.

  • Investors and Funding

Discord relies on investors and funding from big companies. They have around 18 investors, including Cascade VenturesBuddy Shakhashir, Accel, Index Ventures, Greenoaks Capital, Greylock, Benchmark, Accel, General Catalyst, Ridge Ventures, Tencent Holdings, etc.

Discord has raised funds over $379.3 million in 10 rounds. By September 2020, they claimed to raise funds $500 million.

  • Game Sales and Distribution Fees

Discord allows game developers to sell their games. They only charge 10% of revenue to clear the distribution fees. Once you get the approval of selling, 90% revenue will be yours.

At August 2018, discord introduced own game store. Here developers can sell games to the players directly through discord chat server.

  • Nitro Service Package

Discord offers a service premium package, “nitro”. Users have to pay $9.99 per month or $99.99 per year to unlock extra features. Discord also has launched “nitro classic” as a cheaper version. It’s a $4.99 monthly or $49.99 yearly subscription plan.

With premium feature, one can get:

  • Personal animated & GIF avatar
  • Customized emojis (total 250)
  • Personal discord tag
  • Two server boosters
  • Enhance all-in-one discord chat text, voice and video (384 kbps audio quality)
  • HD video and go live streaming.
  • Increase file upload capability (up to 100 MB)

With classic feature:

  1. Total of 150 emojis
  2. 256 kbps audio quality
  3. Server banner
  4. Up to 50MB file upload capability
  • Discord Merch Store

People love to wear discord. That’s why discord establishes its own merchandise store. It offers t-shirts, caps, hoodies, socks, etc. Revenue is also earned from these discord merch stores.

  • Discord Server Makeup

Discord has launched skins, emoji packs, stickers packs, and sound packs to add more fun. It only enhances the user experience.

How to Sign Up in Discord?

It’s simple. On the home page, go to sign up, then “create a new account”. Provide your email, password and date of birth. Then press “continue” and you are done. Or also you can see the “register” option at the top right side. Once you are registered to discord, you can pick the discord web or non-web option.

Discord Revenue Model

Discord has few revenue strategies to make money, such as

  • GameBridge: GameBridge SDK allows free in-game Discord text and voice chat. This technology also offers community in-game interactions, thus giving developers more control.
  • Gaming Arenas: Developers sell their games in discord. Discord provides excellent features to the gamers through Nitro service. Thus generates revenue.
  • Partnership and Revenue Sharing: Discord makes partnerships with top companies. It offers 90/10 split revenue sharing with developers. Developers post their games at discord, get 90% if they sell, and remain 10%.

Discord has given lots of benefits to gamers. It changes the gaming experience. Being an ad-free platform, users like it the most. Uninterrupted communications, community interactions have made it successful.  To rule the market for long, discord will bring more features and security profiles in the future.

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