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Discord

DISCORD

Discord is the world’s premier video and text communication platform.

Discord Photo

Introducing Discord

Established in 2015, Discord is a leading online voice, video, and text communication platform designed for creating communities. Specifically designed for use while gaming, the app includes features such as low-latency, free voice chat servers for users and dedicated server infrastructure [1]. Discord saw its popularity among users soar in its initial emergence, its user base reaching three million by the end of 2015 [2] and expanding further since, to become a platform hosting an estimated 154 million monthly active users as of January 2023 [3].

The world’s premier video and text communication platform

The platform saw a boost in users during the pandemic due to the increase in remote work [4] arrangements, where it experienced a 2.68x increase in monthly active users compared to the pre-pandemic period of 2019 [5]. With its distinct platform features and strong traction, Discord is considered to be one of the top messaging apps in the world [6].

All-in-one messenger app

Discord offers users both a free to use all-in-one messenger platform as well as Nitro, a tiered-subscription program for greater access to various features on Discord.

What is Discord | A Guide for Parents and Educators
Fig 1. Discord Messenger Interface

Messenger Interface

  • Introduced in 2015, under the URL discordapp.com, Discord gained much popularity among esports and LAN tournament gamers, and other Twitch streamers.

  • The company’s user base further diversified during the pandemic, with its increasing usage in schools and workplaces to facilitate remote learning/ work [7][8][9].

 


Fig 2. Enhanced features with Nitro

Discord Nitro Basic

  • Launched in 2017, Nitro Basic was the original service subscription model for Discord.

  • The service allowed greater customizability and premium features to users such as animated avatars and emojis, increased maximum file uploads.

  • Discord Nitro Basic is currently priced on a subscription basis of USD2.99 per month or USD29.99 per year.

  • Since then, Nitro has been a key driver for Discord’s revenue [10]

Discord is rolling out 'Nitro Basic' - a cheaper plan with four useful features - TECHTELEGRAPH
Fig 3. Nitro Basic

Nitro (Premium Subscription based service) [11]

  • Launched in 2018, Nitro is the premium version of Nitro Basic offering a greater range of perks and benefits for subscribers.

  • The subscription afforded users the additional ability to stream in HD with higher frames per seconds, join up to 200 different servers, type longer messages of up to 4000 characters and a full suite of additional customizable features to make discord a space that is truly of their own.

  • Discord Nitro is currently priced on a subscription basis of USD9.99 per month or USD99.99 per year.

 

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Fig 4. NFT Community Page On Discord

Discord Today

Discord Today

Explosive growth in key metrics throughout the years

  • In recent years, Discord has become the primary platform for Web 3.0 creators [12], developers and collaborators, the app’s servers are often used for discussions and news updates on new developments.

  • Companies like Samsung and LG have even adopted the use of discord servers to power their Web 3.0 developmental communities [13].

  • As the development of Web 3.0 infrastructure and the increased demand for a medium to facilitate collaboration between creators continues, Discord has been paving the way for communication platforms [14], already attracting the early adoption of some larger companies as previously mentioned.

Adopting Artificial Intelligence (AI) [16]
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  • Discord is seeking to implement more AI features into its servers with the most notable update being the integration of its chatbot, Clyde, with OpenAI ChatGPT technology, granting users the ability to have conversations with the bots.

  • This is an upgrade beyond its previous features such as helping respond to queries when prompted and providing administrative support for servers.

  • Another such upgrade would be its moderation tools will also be augmented with the use of large language models, relying on OpenAI technology to better alert moderators of server rule breaches.

Consistent market leading performance

  • The platform has been selected by many Web 3.0 developers and NFT Projects as a medium for communication and engagement with customers [15].

  • Brands such as Gucci, Cult & Rain and Adidas have all utilized the platform to run its NFT-centric campaigns.

  • The closed-end format allows for exclusivity and allows brands the ability to legitimize online events.

AI Powered Chat Bot

Fig 5. Discord’s AI-powered Chatbot in Action

Renewed Growth through diversifying its user base

  • As of January 2023, Discord has an estimated 154 million monthly active users and 19 million active servers per week [17].

  • Its revenue model lies on its Nitro subscription packages, server boosting fees as well as fees it receives from games sold on its servers.

  • The company’s pivot in 2020 to market the platform as a medium for communities rather than just gamers, has seen a diversification of its original user base, with 70% of active users using the platform for non-gaming purposes, or equally for gaming and other purposes [18].

  • As a result, the company’s revenue was reported to reach c.US$140 million in 2020, significantly increasing from the US$70 million revenue it generated in 2019.

  • As of 2022, Discord reportedly generated US$428 million in revenue, out of which US$220 million of revenue were gained from various premium and membership subscriptions [19].

Key Management [20]


Fundraising History

Discord has raised over US$1.1B of funding to date, with its last fundraising round valuing the company at US$15B. The company has captured the attention of notable investors, including Sony Interactive, Baillie Gifford, Fidelity and Tencent [21].

For more detailed information on Discord’s investors, please refer to the document titled “Investor List” that can be found in the dataroom.



Fig. 6 Notable Recent Fundraising Transactions [22]

Explore Discord

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