The Powers That Be: Daily Media Monday: Substackistan
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Jun 23, 2025 Jon Kelly, an expert journalist at Puck, joins Dylan Byers to dissect Substack's shaky business model, characterized by high cash burn and stagnating valuation. They debate whether Substack is a tech platform or just a media business in disguise. The conversation highlights the unique challenges faced by writers switching from legacy media to Substack, exploring financial struggles and varied degrees of success among creators. Ultimately, they navigate the evolving media landscape and the entrepreneurial risks tied to independent writing.
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Substack's Ambiguous Business Model
- Substack's fundraising model reveals it is neither a pure tech SaaS nor a traditional media company.
- Its large capital raises and flat valuations suggest uncertain positioning and questionable scalability.
Substack's Competitive Vulnerability
- Substack faces the risk of replication by major platforms like Google or Meta that could offer similar creator services quickly.
- Its current offerings lack strong differentiation, posing vulnerabilities in competitive sustainability.
Only 1% Truly Thrive on Substack
- About 1% of Substack writers truly succeed financially on the platform.
- Most creators find it a tough hustle, with many facing limitations in technology and enterprise support as they grow.