Substack, a hosting and publishing platform for email newsletters, took what seemed like an innocuous step last week: it launched a standalone smartphone app. Not surprising, perhaps, since almost every content startup has an app. Substack’s app, however, is somewhat different, since the company is a middleman that stands in between writers and their audiences, rather than a startup offering a service directly to consumers. Those differences have led to questions about Substack’s long-term strategy, and whether that strategy is good or bad for the writers who use it. Some of the concern stems from the fact that Substack has raised over $80 million in venture financing from a range of VC groups, including Andreessen Horowitz, a leading Silicon Valley venture powerhouse. The funding has given Substack a theoretical market value of $650 million, but that level of investment can put pressure on companies to meet aggressive growth targets.
Substack’s founders, for their part, argue that the app is just an extension of those goals. Hamish McKenzie, Chris Best, and Jairaj Sethi wrote in a blog post on the Substack site that their intention in starting the company was to “build an alternative media ecosystem based on different laws of physics, where writers are rewarded with direct payments from readers, and where readers have total control over what they read.” The app, they argue, builds on those ideas, in that it is designed for “deep relationships, an alternative to the mindless scrolling and cheap dopamine hits that lie behind other home screen icons.” Among other things, they say the app will amplify the network effects that already exist on Substack, “making it easier for writers to get new subscribers, and for readers to explore and sample Substacks they might otherwise not have found.”
Casey Newton, a technology writer who publishes a newsletter called Platformer (which is hosted on Substack) writes that the app is a symbol of “the moment in the life of a young tech company when its ambitions grow from niche service provider to a giant global platform.” Newton writes that it is possible that the Substack app could help writers build growing businesses by advertising their publications to likely readers (the company says that a person who has a credit card on file with Substack is 2.5 times more likely to subscribe to a new publication than someone who hasn’t). But it is equally possible, he says, that the app “makes publications feel like cheap, interchangeable widgets: an endless pile of things to subscribe to, overwhelming readers with sheer volume.” In other words, an app that serves Substack’s interests rather than those of its newsletter authors.
Note: This was originally published as the daily newsletter for the Columbia Journalism Review, where I am the chief digital writer
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