The End of the “Cozy” Discord Era?
It has been rumored for years, but reports now indicate that Discord has confidentially filed for an IPO (Initial Public Offering). This means they could list on the stock market as early as March.
For years, Discord has been the safe haven for creators. It was the one place away from algorithms, ads, and public metrics. But if Discord becomes a public company, its priority shifts. They stop answering to users and start answering to shareholders.
The $10 Billion Gamble
To understand why this matters, you have to look back at 2021. Microsoft reportedly offered to buy Discord for over $10 billion, and Discord said no.
By rejecting that payout, Discord bet on itself. Now, they have to prove to Wall Street that they are worth more than that offer. That is a tall order for a company that is not yet profitable.
How Will They Make Money?
Public markets demand quarterly growth and selling Nitro subscriptions likely won’t be enough to satisfy investors. According to industry analysis, here is how a public Discord might aggressively monetize:
- 📢 Ads: Discord has already been expanding its ad team. We could see targeted ads appearing in user lists or between channels, similar to how Meta monetized WhatsApp.
- 🛒 Commerce: Expect Discord to become a storefront. They recently tested selling in-game items (like for Marvel Rivals), positioning themselves as a direct-to-consumer competitor to Steam or Epic.
- 📊 Data: While Discord claims to protect privacy, a public company sitting on the chat data of 200 million gamers is sitting on a goldmine for advertisers. Hopefully not, but it’s worth mentioning.
The Creator Takeaway
We rely on Discord to build communities because we own the relationship with our members. If Discord begins inserting ads or restricting reach to squeeze out revenue (the dreaded “Enshittification” cycle), we may need to start looking for backups.
Pete’s Content Corner
Delve into my weekly selection of content creation highlights – handpicked videos, podcasts, and tweets that promise to captivate, educate, and entertain.
- YouTube Kills “Sort by New”: In a controversial update to Search, YouTube has added a useful Shorts Filter but removed the “Last Hour” filter. While it’s great to finally filter out Shorts from search results, losing the ability to sort by “New” kills a vital tool for researching breaking trends.
- Twitch Emote Purge: Twitch has removed several global emotes, including fan favorites like PotFriend and WhySoSerious.
- World Record Hype Train: AI VTuber Vedal987 has broken the platform’s Hype Train record for the third time. Viewers flooded the channel to push the train all the way to Level 126, eclipsing all previous benchmarks.
Thanks, as always, for taking the time to read Stream Report.
Pete ✌️
