Is Discord Doomed with their New CEO?

Summary

The video discusses Discord's new CEO, Hman Sakini, previously involved in microtransaction-heavy companies like Activision Blizzard and Candy Crush. It raises concerns about Discord's future as a publicly traded company, suggesting it will prioritize profit over user experience, leading to more monetization, microtransactions, and potentially invasive ads. The speaker warns that Discord may become increasingly user-unfriendly, with features like server boosts, limited friends in voice chat, and the risk of pop-up ads. The video concludes with a sense of inevitability about Discord’s decline, prompting viewers to consider alternatives.

Takeaways

• 😀 Discord has hired a new CEO, Hman Sakini, who has a controversial background, including a history with companies known for microtransactions, such as Activision Blizzard and King (Candy Crush).
• 😀 The concern is that with Sakini's background, Discord may soon adopt microtransaction practices similar to those in mobile games like Candy Crush, leading to potential paywalls and monetization features in Discord.
• 😀 Discord's plans to go public with an IPO could lead to a shift in focus from user satisfaction to maximizing shareholder profits, possibly leading to more monetized features.
• 😀 Sakini's prior experience at McKinsey & Company, a firm with a controversial reputation for its role in the opioid epidemic, raises questions about his ethical track record.
• 😀 Discord has been funded by venture capital since 2013, with some speculating that the pressure from investors for returns may have played a role in the CEO change.
• 😀 The new CEO may push for more monetization on Discord, such as adding paid features, boosting ads, or limiting access to certain features unless users pay for them.
• 😀 Discord's shift to becoming a publicly traded company could change its priorities, with a legal obligation to act in the interests of shareholders rather than users.
• 😀 While the new CEO has a strong gaming background, the fear is that the changes may lead to more intrusive ads and pay-to-win elements creeping into Discord, affecting user experience.
• 😀 There is speculation that the change in leadership could be linked to dissatisfaction with the current pace of Discord's monetization and growth, particularly in light of investor pressure.
• 😀 The biggest fear is that over time, Discord may lose its charm and user base due to increasing monetization, potentially leading users to migrate to other platforms, much like how Discord displaced Skype.

Q & A

Who is the new CEO of Discord, and what is his background?

The new CEO of Discord is Hman Sakini, who previously worked at Activision Blizzard, including overseeing microtransaction-heavy games like Candy Crush and Call of Duty. His background in these companies raises concerns about the future direction of Discord, particularly with regard to monetization.

Why do people fear that Discord will become more monetized under Sakini's leadership?

People fear that Discord will implement more microtransactions and pay-to-win features similar to those seen in games like Candy Crush, where users have to pay for in-game advantages. With Sakini's experience in monetizing games, there is concern that he will push Discord in this direction.

What is the significance of Discord's decision to become a publicly traded company?

By becoming a publicly traded company, Discord will be required to prioritize profits and shareholders' interests. This may result in more monetized features, advertising, and changes that may not align with the current user-focused model of the platform.

How might Discord's monetization strategies change under the new CEO?

Under Sakini's leadership, Discord could introduce more monetized features, such as paywalls, limited server access, and monetized voice chat. Users may be required to purchase Nitro or other paid services to access basic functionalities.

What concerns are raised about Discord's current monetization system?

Concerns include the possibility of pop-up ads, excessive monetized features like paid voice changers or notification sounds, and the potential for limiting server and friend interactions unless users pay for higher tiers like Nitro.

How has Discord been able to make money in the past without heavily monetizing features?

Discord has relied on a relatively user-friendly ad model through its 'quests,' where users watch advertisements in exchange for small rewards like avatar decorations or free Nitro days. This system has been seen as a non-invasive way to generate revenue while maintaining a positive user experience.

What is the theory regarding why Jason Citron, Discord's previous CEO, was replaced?

One theory suggests that Citron was replaced because venture capitalists were dissatisfied with the pace at which Discord was growing and generating returns. As a result, they may have pressured Citron out in favor of someone with more experience in monetization and managing publicly traded companies.

What could be the long-term impact of Discord becoming publicly traded?

The long-term impact could include a shift towards prioritizing shareholder profits, leading to more aggressive monetization strategies, user restrictions, and potential layoffs to cut costs. These changes may negatively affect user experience and drive users to alternative platforms.

How does Discord's past financial performance impact the future of the platform?

Discord has struggled to break even despite having 200 million active users, which has led to significant venture capital investments. The company now faces pressure to become profitable, which could result in the introduction of more monetized features and stricter access to platform functionalities.

What are some alternatives to Discord that users might consider if the platform's monetization becomes too aggressive?

Alternatives to Discord include platforms like Gilded, Revolt, and potentially TeamSpeak. Each has its own set of strengths and weaknesses, but users are concerned that Discord's increasing monetization and potential decline in user experience will lead them to seek out other communication platforms.