Founded in 2017, Substack, which allows writers to send digital newsletters directly to subscribers, has become very popular in recent years with the proliferation of newsletters. By offering an intuitive platform to those looking to monetise their content quickly and easily in addition to developing their audience, it has won over many users, including some European media outlets. However, it seems that more and more users are leaving the platform in recent months, mostly for its competitor, Ghost, which offers greater flexibility.

Substack is great, it has been a big part of its success, but it’s becoming more of a platform, which is not quite the right direction for us
said Mill Media founder Joshi Herrmann, who has just made the transition to the Ghost platform

“I wanted to have a more direct relationship with our readers,” added Hermann. The transition has already been made for two of its websites, London and Glasgow, and will be later made to all their other Substack sites.

Released in 2013, Ghost, an open-source content management system platform, seems to attract more and more customers, mainly because of the very wide options it offers in an increasingly competitive world. Among the main differences with its rival Substack we find the question of personalisation, with in-depth customisation and flexibility, and the cost associated with the use of the platform.

Two reasons that explain Mill Media’s decision. “Paying 10 percent of the subscription revenue to Substack is quite a lot,” said Hermann. Conversely, Ghost only charges a flat fee for usage based on audience size, which reduces costs considerably. “Next year we would have to give them at least around £140,000, compared to £20,000 for Ghost. So it’s a big difference.” Added to that, the transaction fees and the almost impossible customisation. “I wanted to have a more customised web presence, so we can project more things about our brand and build an independent media brand that does not rely on one platform.”

For Isabelle Roughol, an independent consultant, there is no doubt that the Ghost platform continues to gain popularity, having herself made the transition a few years ago. “For me, it was a matter of the product. I left Substack because the product was not customised a lot, every Substack looks the same as everyone. The software you use for a newsletter should be discreet, in the background, and not the start of the show, which should be your content instead,” explained Roughol, adding that the platform has since added a few more features.

Substack has been recently criticised for betting a lot on the development of its own platform rather than highlighting the creators. It has, for example, given readers the ability to read on the Substack app rather than emails delivered to their inboxes. “I think this breaks the relationship between the readers and the creators or publishers. Then, the readers developed a relationship with Substack, which was not the case at the start of this platform,” argued Roughol.

Always an opportunity for others

Priti Patnaik launched in August 2020 the Geneva Health Files, an investigative newsletter on Substack that reports on power and politics in global health. “It’s a great tool for journalists servicing a niche readership,” said the journalist. “As a self-publisher, you would prefer to own the content on your own platform in a secure way instead of being part of a wider platform. But Substack also helps with the network effect where readers find you.”

After four years of activity, they are now publishing long-form content, 3,000-5,000 words, every week. Some content is free and others only accessible with a paywall. Readers have the option to sign up for an annual subscription for €250 or €25 monthly. A strategy that allows them to generate income while continuing to develop their audience through the use of the platform. “We have been able to raise CHF 45,000 [~€48,000] as annualised revenue per year from subscriptions alone over the last 4 years,” said Patnaik, who has no plans to leave Substack at this time. “Leaving Substack to build your own thing is a function of time and resources. Owning a platform gives one greater flexibility on pricing.”

Experts agree that Substack remains interesting for those who are just starting, particularly because it is free and the many advantages it provides, such as the basic template and network effects. However, they stressed out to be careful and to not depend solely on a single platform. The possible unprofitable business can always lead to some decisions that are not in the best interest of the creators or readers. “I think in journalism we learnt, hopefully, over the last decade, how the platform works, and when it’s backed by economic interests, they expect returns,” said Isabelle Roughol. It remains to be seen whether this trend will be confirmed in the coming months and whether Substack could modify its product in the face of competition.

Mill Media

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