Podcast Summary
Substack: Empowering Writers and Readers: Substack is a disruptive publishing platform that puts readers and writers in control, aiming to create a more trustworthy and meaningful content ecosystem.
Substack, a subscription publishing platform, is disrupting the media industry by putting readers and writers in charge. Founders Hamish McKenzie and Justin McLeod came up with the idea while discussing their frustrations with the current media ecosystem and its incentives. They believed social media was negatively impacting society by promoting outrage and insanity. After recognizing the need for a solution, they started Substack to provide writers with the freedom to write about what matters most to them and for readers to support and trust those writers. The company's mission is to build a better future for the human mind by empowering individuals to take control of the content they consume and produce. The rapid growth of Substack has caused excitement and apprehension in the media world, but overall, it represents a significant shift towards a more reader- and writer-centric publishing landscape.
Substack: A Platform for Independent Writers to Connect Directly with Readers: Substack empowers writers to build an audience, monetize their work, and maintain control over their content, while putting readers in control and making them the customer, solving the issues created by social media's attention-grabbing algorithms.
Substack is a subscription publishing platform designed for independent writers to connect directly with their readers without ads or the pressures of maximizing engagement. The platform allows writers to build an audience, monetize their work, and maintain control over their content. The problem with social media, according to the speaker, is rooted in its business model, where users are the product and the incentive is to maximize engagement at all costs. This can lead to the amplification of polarizing and outrageous content. Substack aims to solve this by putting the reader in control and making them the customer. The platform allows readers to pay for content and decide who to trust with their attention. This shift in business model and power dynamics is the solution to the issues created by social media's attention-grabbing algorithms.
A platform for healthy, thoughtful engagement: Substack's business model fosters considered engagement and a diverse range of perspectives, setting it apart from echo chamber-prone social media platforms
Substack's business model, which allows writers to earn a living through paid subscriptions, not only benefits writers but also encourages healthy and thoughtful engagement between readers and writers. Unlike social media platforms, where users are often exposed to echo chambers and performative outrage, Substack's format encourages considered, good-faith engagement. The publishing model allows readers to choose who they engage with, leading to a more diverse range of thought and perspectives. Additionally, Substack's emphasis on considered, thoughtful engagement is reflected in the format of the platform itself, which is conducive to longer, more considered arguments and rebuttals. The company's commitment to this cultural principle is reflected in its hiring practices and the values it upholds. Ultimately, Substack offers a more conducive environment for healthy, thoughtful engagement and the exchange of diverse perspectives.
Aligning business model with values for long-term success: Startups should build business models that align with their values to create a win-win situation for both the company and its stakeholders. Substack's success is a testament to this approach.
When starting a business, it's crucial to align your business model with your values to ensure long-term success. This is particularly important for startups. By doing so, you create a win-win situation where both the company and its stakeholders benefit. For instance, Substack, a platform for independent writers, has built its business model around the idea of making money only when writers make money. This not only incentivizes writer success but also requires Substack to earn and keep their trust. Traditional media outlets, on the other hand, are facing challenges in the current media landscape, but they are not being replaced by platforms like Substack. Instead, Substack is expanding the media ecosystem by offering writers and readers more options. It's essential for businesses to understand their role in the larger ecosystem and focus on providing value rather than chasing after grand promises or VC dollars.
A space for independent voices and new institutions: Substack empowers writers with intellectual freedom, financial reward, and a platform to connect with readers, fostering the emergence of new institutions and critical discourse.
Substack, as a platform, is not an anti-institutional force, but rather a space for dissenting voices and new institutions to emerge. It allows writers to have intellectual freedom, raise the ceiling of what they can earn, and pursue work that resonates with their readers. The platform's cultural principle of "making money when writers make money" aligns with this vision. However, it's important to note that not everyone is welcomed on the platform, and its success depends on the quality and relevance of the content produced. The platform's role is to provide a space for independent voices, which can ultimately lead to improvements in existing institutions by subjecting them to critique and pressure for change.
Substack's commitment to press freedom and control for writers and readers: Substack prioritizes freedom of the press and gives writers and readers control over content and subscriptions, offering advances to some writers but strictly enforcing content rules.
Substack, as a platform, prioritizes freedom of the press and gives writers and readers control over content and subscriptions. The company takes a strong stance in favor of this principle, but has narrowly construed rules for content that must be followed. Substack's confidence in a writer's success has led them to offer advances to some writers, which has been controversial as it shifts the financial risk from the writer to the platform. However, Substack believes in the potential success of their writers and is willing to take on that risk. The platform's design, which puts people in charge of their content and spending, makes it difficult for content that plays well on social media but goes against Substack's content rules to thrive. Despite the controversy, Substack's commitment to giving writers and readers control remains a core part of their philosophy.
Substack investing in writers for financial independence: Substack invests in writers to reduce financial risk, connect them directly with audience value, and properly value historically undervalued talent.
Substack is helping writers achieve financial independence by investing in them and reducing the financial risk involved in starting an independent publication. This is a response to the changing landscape of the publishing industry and the shift towards direct connections between writers and their audiences. The concept is compared to venture capitalists investing in startups and is seen as a return to the past when writers had more control over their own publications. The motivation behind Substack's approach is to properly value and invest in writers who have been historically undervalued. The controversy surrounding the platform comes from the perception that it's similar to hiring writers, but it's actually more akin to a bank deciding which loans to give or a VC deciding which startups to invest in. The ultimate goal is to connect writers more directly with the economic value they create.
Independent voices shaping journalism: The future of journalism may lie with independent writers expressing their ideas freely to their audiences
Journalism has a rich history of independent voices and non-fungible writers shaping public discourse, from the use of pseudonyms in early newspapers to the modern era of Substack. These writers, often considered outsider nerds, possess distinct perspectives, expertise, or philosophies that resonate with their readership and drive cultural and societal progress. The dominance of centralized media structures is potentially an anomaly, as the future of journalism may lie in the hands of independent writers expressing their ideas freely and directly to their audiences.
Democratizing journalism for diverse voices: Substack and similar platforms empower writers to build audiences, make a living, and challenge the status quo for media success
Substack and similar platforms are democratizing journalism by providing a new model for writers, particularly non-fungible voices, to reach audiences and make a living. This includes both established writers looking for more freedom and new voices filling unmet needs. The success of these writers often comes from a combination of building their own audience and Substack's efforts to maximize the discovery of new great writers. Some writers have even made millions of dollars through the platform. This model challenges the perception that only well-known writers can succeed in media, and offers an opportunity for a diverse range of voices to thrive.
Subscription-based media on the rise: Consumers value high-quality content and are willing to pay for it, leading to the growing popularity of subscription-based media platforms.
The media industry has seen several disruptions throughout its history, from subscription-based models to ad-supported models and back again. The latest shift towards subscription-based models is driven by the growing dissatisfaction among consumers with their current media diet and the desire to take back control of their attention. This trend is not limited to "nerds" or a niche audience, but is becoming increasingly mainstream as people recognize the value of paying for high-quality content that resonates with them. The success of platforms like Substack, which allow writers to build a direct relationship with their subscribers, is evidence of this shift. The number of subscribers a writer needs to quit their job depends on individual circumstances, but the trend towards subscription-based media is expected to continue growing. The earlier disruption of ad-supported newspapers by penny papers is an interesting historical precedent, as it highlights the cyclical nature of business models in the media industry.
Substack's business model supports creators with a dedicated audience: Substack empowers creators to monetize their work with a committed readership, from $5 to high-end pricing.
Substack's business model allows creators to build a sustainable business with a small, dedicated audience who deeply values their work. Pricing can range from as low as $5 to $10 a month for personal projects to much higher for corporate content. The platform attracts a mix of professional writers and regular consumers. Regarding cultural issues, Substack prioritizes clarity about its values and thoughtful hiring to maintain its ideals. While the conversation around politics in the workplace is ongoing, Substack, as a smaller company, emphasizes the importance of being clear about principles from the outset. As the company grows, maintaining these values and dealing with potential internal disagreements will become increasingly important.
Substack fosters diverse voices and tackles cultural wars: Substack empowers writers and readers, prioritizes diversity, and uses algorithms with clear objectives to prevent unintended consequences.
Substack, as a platform, is committed to tackling the cultural wars head-on and fostering a diverse range of voices, despite potential disagreements or objections. The company's philosophy prioritizes the autonomy of writers and readers, with writers retaining full ownership of their content and mailing lists. Substack serves as a building block for publishing businesses, and the platform does minimal curation to highlight underrepresented voices without promoting a particular ideological bend. Algorithms, when used, should be guided by a clear objective function to prevent unintended consequences.
Substack prioritizes content that earns writers trust and payment: Substack values writers who can convince their audience to pay for their content, promoting a sustainable business model for both writers and the platform.
Substack's algorithm prioritizes content that earns writers the trust and payment of their readers. This approach, while appearing greedy capitalist in nature, is aligned with Substack's objective function. The platform values writers who can convince their audience to pay for their content, and the leaderboards reflect this. However, Substack also encourages bottom-up discovery, allowing writers and readers to promote new voices and discover each other organically, much like the old days of blogging. The future of Substack lies in peer-to-peer recommendations and collaboration among writers, helping newer voices rise to the surface and build a loyal readership.
Empowering writers for a larger market of valuable writing: Subset is working to give writers more control, create a larger market for thoughtful writing, and expand beyond just writing, all while putting readers and writers in charge.
Subset is working towards building a future where writers have more independence and control over their work, breaking down barriers to entry and creating a larger market for valuable writing. By empowering writers and giving them the tools they need to go independent, Subset aims to increase the GDP of valuable writing and tap into the potential of those who might not have become writers before. This could lead to a larger market for thoughtful writing, similar to how the ride-share industry surpassed the taxi industry. Subset's vision also includes expanding beyond just writing, with writers potentially starting podcasts, having communities, and more. By putting readers and writers in charge, Subset believes they can create an alternate universe where readers subscribe directly to the voices they trust, leading to a better future for the world of writing.
