Building Substack: Reinventing Media Through the Inbox
a16z Podcast
Deep Dive
Why did Substack choose email as its core technology despite it being a 50-year-old technology?
Email was chosen because it allows creators to have a direct connection with their audience without requiring them to install a new app. It bypasses social media algorithms and works seamlessly on phones, making it an effective and simple way to distribute content. This approach was crucial in the early days when getting users to install a new app was a significant barrier.
What lessons did Chris Best learn from scaling Kik that influenced Substack's development?
Chris Best learned the importance of understanding human behavior and the impact of designing systems that people use at scale. He realized that the way systems are set up—rules, incentives, and norms—can create either a positive or negative experience. This insight shaped Substack's focus on empowering creators with direct audience connections and editorial independence.
How did Substack's first customer achieve $100,000 in revenue on the first day?
Substack's first customer was a writer who had been running an email newsletter for years but couldn't monetize it effectively. Substack provided the tools to charge for subscriptions, and the writer made $100,000 on the first day. This early success validated the platform's potential and gave the team momentum to continue building.
What is Substack's philosophy on the role of AI in content creation?
Substack sees AI as a tool to enhance creative leverage, reducing the cost of producing high-quality content. However, the platform believes that the value of trusted human relationships and authentic content will remain paramount. AI will enable creators to produce more efficiently, but the focus will still be on meaningful, human-driven culture.
How has Substack evolved its technology stack as it scaled?
Substack started with a simple email-based platform but has since expanded into multimedia, including podcasts and video. The company now uses advanced machine learning for recommendations and AI tools for video editing. Despite the evolution, the core philosophy of empowering creators with direct audience connections remains unchanged.
What is Substack's vision for the future of media and content creation?
Substack envisions a future where creators have full control over their work, audience, and revenue. The platform aims to expand into multimedia, making it easier for creators to produce and monetize content across formats. The goal is to create a thriving ecosystem where creators can build meaningful careers and audiences can access high-quality, authentic content.
How does Substack differentiate itself from traditional media platforms?
Substack differentiates itself by offering creators editorial independence, direct audience connections, and a sustainable business model. Unlike traditional platforms, Substack allows creators to own their relationships with their audience and monetize their work without relying on ads or algorithms. This model fosters trust and authenticity between creators and their subscribers.
What challenges did Substack face in its early days?
Substack faced challenges in scaling after its initial success. The first customer's $100,000 launch overshadowed subsequent growth, leading to doubts about the platform's viability. It took years to find more high-performing creators, but the early momentum kept the team motivated to continue building and refining the platform.
How does Substack plan to leverage AI in its product development?
Substack is exploring AI tools for creative leverage, such as automated video editing, transcription, and machine learning-based recommendations. The company aims to use AI to enhance the creator experience, making it easier to produce and distribute high-quality content while maintaining the authenticity and trust that define the platform.
What impact has Substack had on the creator economy?
Substack has transformed the creator economy by enabling writers and other creators to monetize their work directly through subscriptions. This model has allowed creators to achieve financial independence, with some earning millions annually. The platform has also expanded into multimedia, further broadening opportunities for creators across various formats.
- Abundant content vs scarce attention
- Substack's use of email
- Origins of Substack