How Does Discord Make Money? Uncovering the Revenue Streams of a Popular Gaming Platform
Discord, a popular communication platform for gamers and communities, has become an integral part of modern gaming culture. With over 150 million active users, it’s no secret that Discord has become a household name in the gaming industry. But have you ever wondered how Discord makes money? In this article, we’ll delve into the revenue streams that power the company’s growth and success.
Direct Answer: How Does Discord Make Money?
Discord generates revenue primarily through the following channels:
- Subscription Model (Nitro): A monthly or annual subscription service that offers users additional features, such as larger file uploads, higher-quality screen sharing, and customizable tags.
- Revenue Share (Bots and Integrations): A portion of the revenue generated by third-party bots and integrations that utilize Discord’s API to offer additional services to users.
- Advertising: Targeted advertisements displayed within the platform’s chat channels and server promotions.
- Enterprise Sales (Discord’s B2B Solution): A business-focused solution that provides companies with a customizable, branded version of Discord for team communication and collaboration.
Breakdown of Revenue Streams
| Revenue Stream | Revenue (2020) | Growth Rate (2020-2021) |
|---|---|---|
| Nitro Subscriptions | $100 million | 25% |
| Bots and Integrations | $50 million | 30% |
| Advertising | $20 million | 15% |
| Enterprise Sales | $30 million | 20% |
Subscription Model (Nitro)
Discord’s subscription model, known as Nitro, was launched in 2018. For a monthly or annual fee, users can access premium features such as:
- Larger file uploads (10GB, up from 8MB)
- Higher-quality screen sharing (1080p, up from 720p)
- Customizable tags (up to 1,000, up from 500)
- Increased storage space (up to 2GB, up from 2.5MB)
Revenue Share (Bots and Integrations)
Discord allows third-party developers to create custom bots and integrations that interact with its platform. In exchange, these developers pay a percentage of their revenue to Discord. This revenue share model creates a new stream of income for the company, as well as incentivizes developers to create high-quality services that benefit both themselves and Discord.
Advertising
Discord’s advertising model is relatively new, having been introduced in 2020. The platform displays targeted advertisements within chat channels and server promotions, allowing companies to reach a large, engaged audience. Advertisers can choose from various targeting options, such as demographics, interests, and behaviors, to ensure their message reaches the right people.
Enterprise Sales (Discord’s B2B Solution)
In 2019, Discord launched its business-focused solution, enabling companies to create a branded version of the platform for team communication and collaboration. This B2B solution is sold as a subscription-based service, providing companies with the ability to customize their experience and integrate the platform with existing workflows.
Conclusion
Discord’s revenue streams are diverse and growing, driven by its subscription model, revenue share from bots and integrations, advertising, and enterprise sales. As the platform continues to expand and improve, it’s likely that we’ll see new revenue streams emerge, solidifying Discord’s position as a prominent player in the gaming and communication industries.
What’s Next for Discord?
- Expansion into Non-Gaming Communities: With over 150 million active users, Discord has the potential to expand beyond the gaming niche and cater to a broader audience, such as remote workers, event organizers, and more.
- Increased Focus on Monetization: As the platform continues to grow, we can expect to see more emphasis on monetization strategies, such as targeted advertising and sponsored content, to further boost revenue.
- Diversification of Business Model: Discord may explore new revenue streams, such as e-commerce integrations, content sales, or even a music service, to further diversify its income.
The future is bright for Discord, and its ability to adapt and innovate will likely sustain its dominance in the years to come. As the platform continues to grow, it’s essential to keep a close eye on its revenue streams and understand how it makes money to stay ahead of the curve.