Startups

Substack faces backlash over the writers it supports with big advances

Comment

Substack office
Image Credits: Substack

Substack has attracted a number of high-profile writers to its newsletter platform — and it’s not a secret that the venture-backed startup has lured some of them with sizable payments.

For example, a New Yorker article late last year identified several writers (Anne Helen Petersen, Matthew Yglesias) who’d accepted “substantial” advances, and others (Robert Christgau, Alison Roman) who’d started Substack newsletters without striking deals with the company.

However, a number of writers publishing via Substack have begun arguing that this strategy makes the company seem less like a technology platform and more like a media company (a familiar debate around Facebook and other online giants) — or at the very least, like a technology platform that also makes editorial decisions subject to scrutiny and criticism.

Last week, the writer Jude Ellison Sady Doyle pointed to writers like Yglesias, Glenn Greenwald and Freddie deBoer (several of whom departed larger publications, supposedly turning to Substack for greater editorial independence) and suggested that the platform has become “famous for giving massive advances [ … ] to people who actively hate trans people and women, argue ceaselessly against our civil rights, and in many cases, have a public history of directly, viciously abusing trans people and/or cis women in their industry.”

Doyle initially said that they would continue publishing via Substack but would not charge a subscription fee to any readers who (like Doyle) identify as trans. Later, they added an update saying they’d be moving to a different platform called Ghost.

Startup cynicism and Substack, or Clubhouse, or Miami or …

Science journalist and science fiction writer Annalee Newitz wrote yesterday that they would be leaving the platform as well. As part of their farewell, they described Substack as a “scam”: “For all we know, every single one of Substack’s top newsletters is supported by money from Substack. Until Substack reveals who exactly is on its payroll, its promises that anyone can make money on a newsletter are tainted.”

Substack has responded with two posts of its own. In the first, published last week, co-founder Hamish McKenzie outlined the details of what the company calls its Substack Pro program — it offers select writers an advance payment for their first year on the platform, then keeps 85% of the writers’ subscription revenue. After that year, there’s no guaranteed payment, but writers get to keep 90% of their revenue. (The company also offers legal support and healthcare stipends.)

“We see these deals as business decisions, not editorial ones,” McKenzie wrote. “We don’t commission or edit stories. We don’t hire writers, or manage them. The writers, not Substack, are the owners. No one writes for Substack — they write for their own publications.”

The second post (bylined by McKenzie and his co-founders Chris Best and Jairaj Sethi) provides additional details about who’s in the program — more than half women, more than one-third people of color, diverse viewpoints but “none that can be reasonably construed as anti-trans” — without actually naming names.

The Dispatch, a news organization built on Substack, passes $1M in annual revenue

“So far, the small number of writers who have chosen to share their deals — coupled with some wrong assumptions about who might be part of the program — has created a distorted perception of the overall makeup of the group, leading to incorrect inferences about Substack’s business strategy,” the Substack founders wrote.

As for whether those writers are being held to any standards, the founders said, “We will continue to require all writers to abide by Substack’s content guidelines, which guard against harassment and threats. But we will also stick to a hands-off approach to censorship, as laid out in our statement about our content moderation philosophy.”

Greenwald, for his part, dismissed the criticism as “petty Substack censors” whose position boils down to, “because you refuse to remove from your platform the writers I hate who have built a very large readership of their own, I’m taking myself and my couple of dozen readers elsewhere in protest.”

But when I reached out to Newitz (a friend of mine) via email, they told me that the key issue is transparency.

“If Substack won’t tell us who they are paying, we can’t figure out who on the site has grown their audience organically, and who is getting juiced,” Newitz said. “It’s blatantly misleading for people who are trying to figure out whether they can make money on the platform. Plus, keeping their Pro list secret means we can’t verify Substack’s claims about how its staff writers are on ‘all sides’ of the political spectrum.”

5 creator economy VCs see startup opportunities in monetization, discovery and much more


Early Stage is the premier ‘how-to’ event for startup entrepreneurs and investors. You’ll hear first-hand how some of the most successful founders and VCs build their businesses, raise money and manage their portfolios. We’ll cover every aspect of company-building: Fundraising, recruiting, sales, product market fit, PR, marketing and brand building. Each session also has audience participation built-in – there’s ample time included for audience questions and discussion. Use code “TCARTICLE” at checkout to get 20 percent off tickets right here.

More TechCrunch

Founder-market fit is one of the most crucial factors in a startup’s success, and operators (someone involved in the day-to-day operations of a startup) turned founders have an almost unfair advantage…

OpenseedVC, which backs operators in Africa and Europe starting their companies, reaches first close of $10M fund

A Singapore High Court has effectively approved Pine Labs’ request to shift its operations to India.

Pine Labs gets Singapore court approval to shift base to India

The AI Safety Institute, a U.K. body that aims to assess and address risks in AI platforms, has said it will open a second location in San Francisco. 

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

16 hours ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

3 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

3 days ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies