Disorderly, the popular messaging platform primarily used by gamers, has been making headlines for its $15 billion valuation. In a tech landscape marked by shifts in valuations and market dynamics, Discord has managed to retain its lofty valuation. Now, the company is diversifying its revenue streams by opening up its marketplace to a broader user base.
Discord: A Valuation Journey
Two years ago, Discord was valued at $15 billion, an impressive feat that marked a substantial increase in value in just a matter of months. This valuation, achieved during a period of tech market enthusiasm, raised eyebrows. In the subsequent year, tech stocks faced significant declines, leading many high-valued private companies to reassess their worth alongside capital raises. Discord, however, chose to maintain its valuation, even as public funds marked down their shares.
Discord: It’s Diverse Portfolio
Discord has diversified its offerings beyond being a gaming-centric messaging platform. It recently debuted an in-app store known as Shop, which allows users to enhance their accounts and avatars with virtual items such as hats and animations. While initially aimed at subscribers of Discord’s premium Nitro offering, the company has announced plans to expand Shop access to all users, significantly broadening its market.
Nitro and Revenue
Nitro memberships, priced at $2.99 or $9.99 per month depending on features, play a pivotal role in Discord’s revenue generation. Instead of relying on digital advertising, as social media giants like Meta, Snap, and Pinterest do, Discord focuses on attracting subscribers willing to pay for premium features, such as large file sharing and high-definition video streaming.
Discord’s marketplace, while offering unique digital goods like Halloween-themed avatar decorations, does not go as far as platforms like Roblox, which allows users to create, sell, and share in revenue. Discord’s approach remains first-party, with all digital goods created by the company. These digital items are priced at levels resembling premium skins in other games, emphasizing their value to users.
Discord aims to cater to users who may not be interested in subscription memberships but are willing to make one-time purchases for a more personalized experience within the platform. By expanding its marketplace to a larger user base, Discord seeks to capture a wider audience and capitalize on the appeal of digital customization.
Revenue Opportunities and User Safety
Discord is also looking to offer revenue-sharing opportunities to developers in the U.K. and Europe who build apps on the platform and gain subscribers. With this initiative, developers can retain 70% of subscription sales, creating additional revenue streams.
In addition to expanding its marketplace, Discord is prioritizing user safety. The company is introducing a warning system to notify users if they’re in violation of content moderation rules. Furthermore, Discord is implementing a teen safety assist tool, aimed at providing age-appropriate safety measures for younger users.
Discord’s strategic moves, including expanding its marketplace and focusing on user safety, reflect the company’s efforts to diversify revenue streams and sustain its impressive $15 billion valuation. As the platform seeks to engage a broader user base and provide innovative features, the tech world will be closely watching its ability to justify this valuation in the long term.
The post Discord Expands Marketplace to Justify Its $15 Billion Valuation </br> <span style='color:#6A6A6A;font-size:20px;font-style: italic;font-weight: 400;'>Let's explore how Discord is navigating this high valuation and its strategic move into the marketplace.</span> appeared first on TechStory.