Substack Faces Competition as Writers Switch to Alternative Platforms
Substack, the once-buzzy newsletter platform, is experiencing a significant talent drain as writers flock to lesser-known rival platforms. Recently, The Ankler, a leading publication on Substack, moved to a new platform that offers more control over its content and site management. This trend reflects a growing dissatisfaction among creators regarding Substack’s increased focus on social features and a pricing model perceived as burdensome.
The Impact of Platform Policies
In 2024, Substack faced backlash for its decision to host newsletters with extremist content, contributing to a mass exit of writers. However, current departures are primarily rooted in concerns over the platform’s evolving features and policies rather than issues related to hate speech.
Sean Highkin, the creator of the NBA-focused newsletter The Rose Garden Report, shared his experience with The Verge, stating that since switching from Substack to Ghost, he has seen a dramatic increase in income. “When I first joined Substack, they featured me heavily, which led to strong initial growth,” Highkin said. “Once I lost that status as ‘new talent,’ my growth stagnated.” He reported saving nearly $3,000 annually after moving to Ghost, whose services are priced significantly lower than Substack.
Cost Comparison: Substack vs. Alternatives
Matt Brown, the creator of Extra Points, echoed similar sentiments. After switching to Beehiiv in 2021, he noted that Substack’s fees would now exceed $25,000 annually, while he pays about $3,000 on Beehiiv, thereby optimizing his profits.
The Ankler’s decision to migrate to Passport, a platform developed through a collaboration with Automattic and Stratechery founder Ben Thompson, underscores a shift among established publications. Janice Min and Richard Rushfield, co-founders of The Ankler, explained in a blog post that the transition represents an effort to create a “fully integrated media company,” enhancing their operational flexibility and control over revenue streams.
Flexibility and Customization: Key Considerations
Min succinctly articulated the feelings of many creators, stating in a newsletter that “we needed more flexibility and control across products, revenue, and audience relationships than Substack allows.” This sentiment may resonate with several other prominent newsletters, such as Culture Study, which saw creator Anne Helen Petersen leave Substack for a more customizable experience on Patreon.
Substack launched in 2017 with the vision of empowering writers to manage their newsletters and subscriber lists independently. However, creators have increasingly criticized Substack’s 10 percent cut of subscription revenue, which can escalate dramatically as subscriber counts rise. For instance, a newsletter charging $10 per month with 10,000 subscribers can see fees balloon to nearly $80,000 annually.
Conversely, many rival platforms, such as Ghost and Beehiiv, utilize a flat-fee model which can significantly reduce operating costs for creators. Ghost’s basic plan starts at just $15 monthly, while Beehiiv offers a free tier for newsletters with fewer than 2,500 subscribers, with costs increasing gradually based on size.
Limitations on Customization and Ecosystem Concerns
Substack’s structure has also raised concerns about its closed ecosystem. Critics argue that limited integration with third-party applications forces writers to rely solely on Substack’s internal tools. Despite introducing various features—like podcasting tools and social networking options—it has also met controversy over new initiatives that some perceive as straying from its core mission.
Beehiiv founder Tyler Denk contrasts his platform’s philosophy with that of Substack, emphasizing that Beehiiv aims to empower creators without overshadowing their branding. A system reminiscent of Shopify—a platform designed to support independent retail businesses—allows Beehiiv users to build their brands without the platform’s logo dominating their presence.
Migration Challenges for Substack Creators
One of the practical constraints of leaving Substack is the challenge of subscriber migration. Although creators can export their subscriber lists, they cannot transfer “followers” accumulated through the platform’s social features. This limitation has discouraged some from maintaining an active presence on Substack while seeking alternative options.
Despite these challenges, Substack representatives assert their commitment to creator autonomy. Hanne Winarsky, Substack’s head of New Media, noted that many creators have returned after experimenting with other platforms, indicating that some still find value in the original model.
Ultimately, while the high-profile departures may not foretell the impending demise of Substack, they certainly signal a notable shift. Increasingly, it appears that Substack may serve as a launching pad for publications rather than a permanent base of operations. As more alternatives gain traction, attracting new talent to Substack may become more challenging, shaping the future landscape of online publishing.
For more insights into this ongoing trend, read the full article here.
Image Credit: www.theverge.com
