Substack Funds Local Journalism with $1M Initiative
Substack's New Initiative to Support Local Journalism
The ongoing discussion surrounding Substack has largely centered on prominent, nationally recognized authors. However, the platform recently unveiled a new program designed to bolster local journalism, specifically targeting independent writers.
Introducing Substack Local
Substack Local is a $1 million program intended to provide funding for writers dedicated to creating local news publications. This initiative mirrors the Substack Pro program in its provision of financial support.
Writers will be eligible for cash advances reaching up to $100,000. Furthermore, the program includes mentorship opportunities and reduced-cost access to both health insurance and design services.
In return for this support, Substack will receive 85% of subscription revenue generated for a period of one year. Following this initial period, the standard revenue share will revert to 10%.
Application and Selection Process
The deadline for applications is April 29th. A panel of judges, all established Substack publishers, will be responsible for selecting the program participants.
The judging panel includes:
- Zeynep Tufekci of Insight
- Anne Helen Petersen of Culture Study
- Dick Tofel of Second Rough Draft
- Rachel Larimore, managing editor of The Dispatch
Partnership with Stuff
Substack is also collaborating with Stuff, a New Zealand-based media organization. This partnership will facilitate the launch of two new publications focused on under-reported regions within New Zealand.
Addressing Criticism and Motives
Some critics might view initiatives like Substack Local as a public relations strategy. Similar programs have been announced by companies like Facebook and Google to support local news outlets.
This announcement follows recent scrutiny of Substack regarding its financial support of writers holding controversial views. The company recently disclosed new contracts with transgender writers, including Daniel Lavery, demonstrating a broadening of its author base.
The Need for Local News
The necessity of strengthening local journalism is undeniable. The closure and financial difficulties of numerous local newspapers have created significant “news deserts” across many communities.
The future of local news may depend on new, digitally-driven publications and the work of independent journalists.
Substack's Business-Focused Approach
According to a company blog post, this program is not intended as a philanthropic endeavor. Substack’s stated objective is to cultivate a sustainable business model for independent local news, allowing for substantial growth potential.
“Our goal is to foster an effective business model for independent local news that provides ample room for growth,” the company explained.