A video on Discord’s business model

Discord is a communication app worth over $7 billion without ads or data selling, with a rapid user expansion. Its founder also created Open Faint.

00:00 Discord’s success can be attributed to its rare rapid growth and lack of advertisements.

03:20 Discord’s success is driven by its value proposition and growing user base.

06:36 Discord turned down a $12 billion buyout offer from Microsoft in 2021.

09:41 Tencent’s majority control of Discord poses serious privacy concerns.

12:45 Discord’s weak encryption makes it vulnerable to hackers and Tencent’s surveillance business model

15:42 Tencent’s investments in western social media companies raise concerns about data harvesting and surveillance by the Chinese government

18:31 China’s long-term strategy to dominate global events using data and ruthless business practices

21:14 China’s access to data through technology is becoming a concern

Detailed Summary for Discord: The Most Evil Business In The World by Merlin

00:00 Discord’s success can be attributed to its rare rapid growth and lack of advertisements.
– Discord has accrued over 350 million users in just 6 years and has leverage over everyone.
– Discord’s success is due to founder Jason Citron’s previous company, Open Faint, which was accused of mishandling user data.

03:20 Discord’s success is driven by its value proposition and growing user base.
– Discord’s business model is focused on getting investments rather than generating revenue through subscriptions.
– Discord’s growth is fueled by its constant upgrades and unrivaled value proposition, making it the go-to messaging app for millions of users.

06:36 Discord turned down a $12 billion buyout offer from Microsoft in 2021.
– Discord generates money by selling parts of their company and the access to data that comes with it.
– Tencent, a communist company with ties to the Chinese government, owns a 38% share in Discord which raises concerns about data privacy and government censorship.

09:41 Tencent’s majority control of Discord poses serious privacy concerns.
– Tencent bought shares in 600 companies when the Chinese law required user data sharing.
– Discord claims to never sell user data but shares information with vendors and advertising platforms.

12:45 Discord’s weak encryption makes it vulnerable to hackers and Tencent’s surveillance business model
– Discord does not have end-to-end encryption like other messenger apps
– Discord’s rejection of lucrative acquisition offers from major tech giants is risky and Tencent’s continued investment in Discord is to acquire user data for surveillance purposes

15:42 Tencent’s investments in western social media companies raise concerns about data harvesting and surveillance by the Chinese government
– Chinese government agencies have been investing in sophisticated systems to gather data for propaganda efforts and to build early warning systems to protect Beijing’s interests
– China’s 2049 plan, aimed at overtaking the US as the world’s dominating power, includes mining western data and using artificial intelligence to improve propaganda efforts

18:31 China’s long-term strategy to dominate global events using data and ruthless business practices
– Western companies give away trade secrets for access to China’s market
– China’s authoritarian capitalist model makes it impossible for the West to access Chinese data

21:14 China’s access to data through technology is becoming a concern
– Discord’s exponential growth increases Tencent’s leverage over the global population
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