Unlock Editor’s Digest Lock for Free
FT editor Roula Khalaf will select your favorite stories in this weekly newsletter.
Substack has added over a million subscribers since Donald Trump won the US election last November as online platforms benefit from a shift towards creator-driven journalism.
Subscack, a platform for authors and other content creators, reached a 5mn paid subscription in March with publications and podcasts. The platform attracted an additional million subscribers in November to March alone, generating positive cash flow in the first quarter.
Supported by investors such as Wall Street Banker Omede Malik and voting expert Nate Silver, Subscack offers journalists, politicians and commentators the opportunity to be paid directly from their audience via subscription fees.
The platform benefits from the influx of traditional media executives, like former CNN star Jim Acosta portrays new audiences.
While Acosta and other journalists are cutting out traditional media channels and building a large community of followers, new media groups such as Bari Weiss’ Free Press are based on the platform of their businesses.
The US State Department, led by Marco Rubio, joined Subsack last month and joined other US politicians, including Pete Battigeg. Brands and businesses also use platforms to reach consumers
“There were moments of great interest around the election, then (President Trump’s) first 100 days. That series of people in the universe is coming,” said Chris Best, co-founder of Substack.
The journalists had left the traditional outlet, he added. They protested the policies of owner Jeff Bezos, including “a bunch of people decanted from the Washington Post.”
Washington Post commentator Jennifer Rubin and cartoonist Anne Ternaes resigned earlier this year and are now writing for their own substance.
Substack has been receiving Takeover offers “quite often” after confirming that Elon Musk tried to buy the platform after taking over Twitter. “It was (but) a few (but) one that focused on building successful independent companies.”
YouTube represents a major competition for the platform, given its shift towards online creator-driven journalism and its shift to shows that include podcasts at the expense of legacy media channels.
Over 50,000 publishers make money on Substack, with the top 10 earning more than $40 million a year. Substack reduces revenue by 10%. Substack refused to provide further financial details simply because it “focuses on growth, not profitability.”
A written newsletter-focused platform, Subscack is expanding its services to provide improved video creation, audio and editing. In April 2024, more than half of the 250 top candidate creators used audio and video. By February 2025, that number will be four-fifths, reflecting the shift towards multimedia content.
Substack raised a full funding round in 2021, backed by investors including venture capital firm Andreessen Horowitz, but later won an additional $10 million in the “Friends and Family” round at the end of last year. They most refused to say whether the group was trying to raise more money.
“The company is growing very efficiently and I hope that the company is independent. This means that for me there is no pathway that doesn’t require external capital to achieve its goals.
