Discord Inc.

Discord Inc. is an American technology company founded by Jason Citron and Stanislav Vishnevskiy, best known for developing the Discord communication platform. Launched publicly in 2015, the platform initially gained traction within the video game community as an alternative to existing services like TeamSpeak and Skype. It has since evolved into a general-purpose platform for communities and friends, supporting text, voice, and video communication across a wide array of servers.

History

The company's origins trace back to Jason Citron's previous venture, OpenFeint, a social platform for mobile games which was sold to GREE in 2011. Using capital from that sale, Citron founded Hammer & Chisel, a game development studio, in 2012. While developing the multiplayer game Fates Forever, the team became frustrated with existing VoIP tools and built an internal communication solution. Recognizing its broader potential, they pivoted to focus solely on this tool, rebranding it as Discord in 2015. The platform saw rapid adoption within communities for games like League of Legends and Minecraft, and by 2018, it had surpassed 130 million registered users. Significant funding rounds included investments from Greylock Partners, Index Ventures, and Tencent. In 2021, the company ended acquisition talks with Microsoft and other potential suitors, opting to remain independent.

Features

The core product is a freemium application that organizes communication into user-created or community servers, which are subdivided into text and voice channels. Key features include low-latency voice over IP chat, video calling, and screen sharing. The platform supports rich embedding of content from sites like YouTube, Spotify, and Twitch. User roles and extensive permission systems allow for granular moderation. The Discord Nitro subscription service offers enhancements such as higher quality screen sharing, custom emoji, and larger file uploads. The company also operates the Discord Store, a curated marketplace for indie games, and has integrated activities like watching YouTube videos or playing Jackbox Games directly within voice channels.

Business model

Primary revenue is generated through its premium subscription service, Discord Nitro, which offers users cosmetic and functional upgrades. The company previously operated a game storefront, the Discord Store, and a subscription game service akin to Xbox Game Pass, though these were scaled back in 2019 to refocus on core communication features. Additional revenue streams include partnerships and promotional collaborations with game publishers and events like E3. The company has raised substantial venture capital from firms including Greylock Partners, Index Ventures, Spark Capital, and Tencent, with a valuation reaching approximately $15 billion following a 2021 funding round. It has explored, but not implemented, advertising as a revenue source.

Controversies

The platform has faced significant scrutiny over moderation and the use of its services by extremist groups. It was used as an organizational tool during the Unite the Right rally in Charlottesville, Virginia, and by perpetrators of events like the Pittsburgh synagogue shooting. The company has responded with increased moderation efforts, banning servers associated with QAnon, Boogaloo, and other far-right groups. It has also grappled with issues of cybercrime, including the use of its services for coordinating swatting incidents and distributing malware. In 2023, the company faced backlash over a proposed username change policy and settled a lawsuit with the Federal Trade Commission concerning violations of the Children's Online Privacy Protection Act.

Impact and reception

Discord Inc. has profoundly influenced online community interaction, becoming a central hub for gaming, education, hobbyist groups, and even professional organizations. It played a crucial role in the grassroots organization of movements like the GameStop short squeeze and serves as a vital communication tool for streamers on Twitch and YouTube. The platform has been praised for its audio quality, reliability, and user-friendly design, winning awards like the Crunchies for "Best Overall Startup." It boasts hundreds of millions of registered users, cementing its status as a major player in social technology alongside platforms like Slack, Telegram, and Reddit.

Category:American companies established in 2015 Category:Social media companies Category:San Francisco Bay Area companies