London Daily

Focus on the big picture.
Tuesday, Nov 25, 2025

Clubhouse: Is the audio app really worth $4bn?

Clubhouse: Is the audio app really worth $4bn?

Live-audio app Clubhouse is creating plenty of chatter - about itself.

Elon Musk, Oprah Winfrey, Kanye West, Demi Lovato and Mark Zuckerberg are among the celebrities to have popped up on the service. And you can find chats about everything from Bitcoin and Buddhism to relationships and R&B music on it.

Even so, the idea that this one-year-old app could be worth $4bn (£2.9bn) is startling.

It stems from a Bloomberg report saying the San Francisco-based start-up is seeking fresh funds at this level.

But it was only in January that venture capital fund Andreessen Horowitz bought a stake valuing the firm at a quarter of the sum.

The jump may be justified by a follow-up report that Twitter has discussed buying the app for the higher price - although it declined to confirm this when asked.

Tesla chief Elon Musk and the singer Demi Lovato have both appeared on Clubhouse in recent weeks
Why would Clubhouse be worth so much?


Clubhouse had about 13.4 million users in late March, according to research firm App Annie, having added about a fifth of that number over the previous four weeks alone.

In short, it's growing quickly - despite being "invite only" and limited to Apple's iOS - and appears to have found a gap in the market.

"It's at the intersection of several hot trends - audio, live and social," said Joseph Evans from Enders Analysis.

"And it's recreating some of the things we can't do normally because of the coronavirus pandemic restrictions, such as attending a talk or having a group conversation."

At present the app doesn't make any money. But that's not necessarily important.

As Sarah Frier's book No Filter recounts, Mark Zuckerberg insisted Instagram take its time before introducing ads after Facebook bought the photo app in 2012 for a then-groundbreaking $1bn.

The reason, he said, was that it was more important to establish "staying power" first.

Facebook completed its takeover of Instagram in September 2012, but the product took until November 2013 to show its first ad

But Instagram only achieved its value because both Facebook and Twitter wanted to buy the business.

And that's unlikely to be the case this time round.

"A few years ago Facebook would probably have already put an offer on the table [for Clubhouse], said Mr Evans.

"But it's not in the market for another social network because of the competition scrutiny that it's under, so Facebook's only option is to compete with it."

Indeed, Facebook has just launched a new web-based app of its own called Hotline, which lets hosts chat to their audience via audio and text.

What other rivals are out there?


Twitter has already launched Spaces, an audio-streaming feature inside the existing Twitter app.

It is being rolled out to select creators first, but the plan is to allow anyone to create a "space" later this month.

Chat app Telegram launched a voice chat feature last year, and revamped the feature in March to work like Clubhouse's one-to-many dynamic.

And Discord - a sleeping giant in the voice comms space - has just launched Stages, where one speaker "on stage" can speak to many people at once.

Discord has introduced a way for users to run audio-centric events

Business-focused giants Slack and LinkedIn are known to be working on the idea too.

Many of these apps have much bigger audiences than Clubhouse ever has had - and are available on more platforms, including Android and PCs.

What other challenges does Clubhouse face?


Content moderation is set to be a big issue.

Clubhouse has already attracted controversy with reports of it being used by far-right personalities to discuss claims of women fabricating rape accusations, as well as instances of racism, sexism and anti-Semitism.

And this isn't a good time to attract this kind of attention.

Politicians in the US are threatening to remove legal protections given to social networks under a law known as Section 230, after accusing them of bias and allowing harmful material to run rampant.

And in the UK, the proposed Online Safety Bill could soon give regulator Ofcom the power to block apps it judges to have failed to protect users.

Policing live audio is a lot harder than using algorithms to detect offensive text-based comments.

And while Clubhouse does retain audio recordings of chats if an incident is reported to it in "real-time", it does not do so if a user tries to report a past offence, hindering any follow-up investigation.

China blocked access to Clubhouse in February after users discussed the country's repression of its Uyghur population and the historic Tiananmen Square protests

Another risk is that Clubhouse might not prove "sticky" enough with its users.

One early adopter says she has found herself using it less and less because there are podcasts and other media available that do a better job of competing for her attention.

"Clubhouse makes it really easy for people to create content, but actually the content itself is surprisingly hard to use," said Sharon O'Dea, an Amsterdam-based digital communications consultant.

"You can't share it, you can't record it, you can't quote it, and it often takes speakers ages to get to their key point.

"It just feels to me like it's it doesn't respect my time as a consumer."

How might Clubhouse become profitable?


The traditional way for social networks to make money is adverts.

But an audio-only format makes that difficult.

Would users stick around if forced to listen to pre-roll promotions? Would the natural flow of conversations be damaged by hosts having to pause for regular breaks, or worse ads simply playing over parts of discussions, in a similar way to how Twitch interrupts video gameplay?

As an alternative, the app's creators have suggested they could take a cut of payments made by listeners to room hosts in order to thank them or access premium "ticketed" content.

Patreon, another start-up, has already built a business around this model, and was valued at $4bn in its latest funding round.

Clubhouse has just introduced a money transfer tool of its own - but for now has opted to let 100% of payments go to creators rather than taking a commission.

Newsletter

Related Articles

0:00
0:00
Close
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
UK Records Coldest Night of Autumn as Sub-Zero Conditions Sweep the Country
UK at Risk of Losing International Doctors as Workforce Exodus Grows, Regulator Warns
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
×