The Why of Substack

Not for the first time, the newsletter platform Substack is coming under criticism for hosting and now (accidentally) promoting Nazi content. Today, John Gruber of Daring Fireball is leading this crusade. This seems to be a recurring occurrence. They have controversies. Many express outrage. Some leave the platform. And Substack keeps growing. Why?
I took a step back and asked some basic questions. The answers should help you understand the “why” of Substack.
- What is Substack really selling?
- Why do they have 5 million people paying for subscriptions on their platform?
- Why are they growing?
- What have they built?
- Why did they receive $100 million in new funding at a valuation of $1 billion?
Back in 2011, in an interview with McKinsey & Co, Eric Schmidt, former CEO of Google, pointed out that, “Over 5 or ten years, fiber optics and the wireless explosion will completely crush the business models of old media companies and industries. For companies focused on content and distribution, distribution just goes away.”
Around that same

