Is Substack's New 'Notes' Feature a Move Towards Advertising or a Strategic Differentiation?
Substack, the popular newsletter platform has come under scrutiny recently for its new feature called “Notes,” with some users speculating that it’s an attempt to pivot to an advertising-based business model. The skepticism has not been helped by the fact that Substack raised a ton of money on a high valuation, spending 25 million to make just one million last year and is now scrambling to raise a new crowd-sourced round. However, it’s important to note that Substack is very clear that its ultimate goal is to convert casual readers into paying subscribers, and it runs on paid subscriptions, not ads. This differentiation sets it apart from social media sites like Twitter and Facebook who rely on ad revenue.