London Daily

Focus on the big picture.
Monday, Sep 21, 2026

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
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
Ed Sheeran Tour Faces Backlash After Macklemore Is Removed Over Pro-Palestinian Remarks
Vandalism of Traffic Cameras Intensifies Across Parts of England
Nearly 300 Evacuated as Fire Hits Grand Burstin Hotel in Folkestone
King Charles Warns AI Executives About Risks From Uncontrolled Technology
Church of England Apologises for Role in Historical Forced Adoption Practices
UK Debate Over Online Speech Intensifies After Arrest Figures Draw Scrutiny
Oxfordshire Village Holds Symbolic Independence Vote Over Asylum Accommodation Plan
Nigel Farage and Richard Tice Sue National Crime Agency Over Alleged Banking Data Leaks
Apple Introduces Stricter Age Checks for UK Accounts
BBC Cash Reserves Fall 66% to £125 Million as Broadcaster Restructures
McLaren Announces £500 Million UK Investment and Plans 1,000 Jobs
Green Party Wins Historic Gorton and Denton By-Election as Labour Falls to Third
Burnham Government Prepares October Budget Under Growing Fiscal Pressure
UK Energy Suppliers Pull Fixed-Price Deals as Wholesale Markets Turn More Volatile
Bank of England Holds Rates at 3.75% as Middle East Energy Shock Raises Inflation Risks
Addison Lee Founder Loses £20 Million UK Tax Tribunal Case
BrewDog Creditors Face Losses on About £190 Million of Debt
Harrods Seeks to Recover Abuse Compensation Costs From Mohamed Al Fayed’s Estate
Ed Davey Targets Reform UK as Liberal Democrat Conference Opens
Great Britain Retail Sales Rise 0.5% in August
NHS England Approves Life-Extending Treatment for Incurable Breast Cancer
Proposals to Limit NHS ADHD Diagnoses Draw Criticism From Patient Groups
Resolution Foundation Warns of Housing Cost Crunch for Low-Income UK Families
BBC Cash Reserves Fall to Decade Low as Annual Deficit Reaches £121 Million
Millisecond Software Error Triggered Major UK Air Traffic Control Disruption
Twenty Women Underwent Unnecessary Mastectomies During NHS Cancer Care
Sensitive UK Police Data Found Vulnerable to Access by Foreign Actors
British Steel Faces Renewed Pressure for a Long-Term Financial Plan
MPs Urge Government to End Thames Water Restructuring Talks With U.S. Hedge Funds
Andy Burnham Warns of Difficult UK Budget Choices as Inflation Returns to 3.1%
England Tightens School Food Standards With Restrictions on Deep-Fried and High-Sugar Foods
Oxfordshire Village Votes Symbolically to Leave UK Over Proposed Asylum Centre
Michael Marra Elected Leader of Scottish Labour
BBC Cash Reserves Fall Sharply as Financial Pressures Mount
George Osborne Calls for UK to Rejoin EU Customs Union
×