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| Discord App 2021 Poland on April 3 Seen on an iPhone in this photo illustration in Warsaw. |
Two years ago, At the height of tech market volatility, Discord was valued at $15 billion and doubled in just a few months.
In the following year, Tech stocks have suffered their worst decline since the 2008 financial crisis, leading high-value private companies to reduce their valuations as they raise capital. But Discord has remained stagnant, avoiding a return to the capital markets even as public funds have reduced the value of their shares.
Discord, ranked 18th on Disruptor 50 list this year, is now pushing into a new business as it seeks to justify that lofty valuation. The company that provides the popular messaging service used by gamers said Thursday that virtual goods and digital customization tools in its marketplace will soon be available to all users, not just subscribers.
The company recently debuted its in-app store, called Shop, as a way for subscribers to its premium Nitro offering to decorate their accounts and digital avatars with premium items like hats or colorful cartoons.
"Right now, non-Nitro subscribers have basically never had avatar customization," Peter Sellis, Discord's senior vice president of product, told. "We're going to open it up to a much larger pool of non-Nitro users through the store."
Nitro memberships cost $2.99 or $9.99 per month, depending on certain features, and account for the majority of the company's revenue.
Discord eschews the digital advertising model. Instead, Subscribers willing to pay for special features like sharing large files and streaming high-definition video.
In the new market, Halloween-themed avatar decorations, including a black cat resting on a tombstone, will be available to customers for $8, Sellis said. Nitro members will receive a 30% discount.
Discord isn't as far removed from digital commerce as gaming site Roblox.
It recently allowed users to create and sell their own decorations and costumes and share in the revenue.
"It's the first party right now for all the Nitro stuff we're selling, and it's all made by us," Sellis said, adding that digital stuff is becoming more popular among gamers.
Discord prices its digital goods at a level that resembles "premium skins on other games," because of the value that some consumers believe they represent, Sellis said.
"It appears with you everywhere you are, in every chat, every day," Sellis said of the decorations. "It has a lot of impressions, to use ad terminology, so you see it a lot across the service, so it actually has quite a lot of value from that perspective."
Sellis said there are likely a lot of Discord users who don't want to pay for memberships, "but wouldn't mind paying a one-time cost to show up a little bit more special within Discord."
Discord also said it would begin offering a way for eligible developers in the U.K. and Europe to share in company revenue by building apps on top of the platform and letting users subscribe to them. The service, which is already available in the U.S., allows developers to keep 70% of the subscription sale.
In addition to new revenue opportunities, Discord is emphasizing its focus on user safety. The company said it's debuting a warning system intended to inform users if they're violating certain content moderation rules.
A new teen safety assist tool will also become a default setting for younger Discord users, blurring certain media deemed inappropriate for children when they chat and send direct messages to friends. Additionally, the safety tool will scan DMs to "detect if a safety alert should be sent to the teen," the company said.
"The safety alert will encourage the recipient to double check if they want to reply, and will provide links to block the user or view more safety tips to safeguard themselves if needed," Discord said.
