Substack Faces Scrutiny Over Writer Payments and Platform Independence

Substack, the newsletter platform, has gained prominence by attracting numerous well-known writers. It’s widely acknowledged that the company has incentivized some of these creators with significant financial offers.

Initial Reports of Substack Advances

A recent article published by The New Yorker highlighted several writers, including Anne Helen Petersen and Matthew Yglesias, who received “substantial” advances from Substack. Other authors, such as Robert Christgau and Alison Roman, initiated newsletters on the platform without formal financial agreements with the company.

The Platform vs. Media Company Debate

Increasingly, writers utilizing Substack are voicing concerns that this practice blurs the line between a technology platform and a traditional media organization. This echoes a familiar discussion surrounding companies like Facebook and other large online entities.

Concerns About Editorial Alignment

The debate centers on whether Substack, while offering a platform, is also making editorial choices that warrant examination and potential criticism. Some argue the platform’s financial incentives influence the content it hosts.

Allegations of Supporting Controversial Voices

Jude Ellison Sady Doyle recently pointed out that writers like Glenn Greenwald and Freddie deBoer – individuals who previously worked at larger publications seeking greater editorial control – were among those receiving substantial advances. Doyle suggested that Substack has become “famous for giving massive advances to people who actively hate trans people and women.”

Writer Departures and Platform Alternatives

Initially, Doyle stated they would continue publishing on Substack but waive subscription fees for transgender readers. Subsequently, they announced a move to Ghost, an alternative platform.

Annalee Newitz's Departure and "Scam" Accusation

Science journalist and science fiction writer Annalee Newitz also announced their departure, labeling Substack a “scam.” They questioned the transparency of the platform’s financial support for its top newsletters.

Substack's Response: The "Pro" Program

Substack responded with two official statements. Co-founder Hamish McKenzie detailed the “Substack Pro” program, which provides select writers with an advance payment for their first year. The company then retains 85% of subscription revenue, increasing to 90% after the initial year.

Substack's Stance on Editorial Independence

McKenzie emphasized that these deals are purely business-related, stating, “We don’t commission or edit stories. We don’t hire writers, or manage them.” He asserted that writers maintain ownership of their publications and write for their audiences, not for Substack.

Diversity and Content Guidelines

A second statement from the Substack founders (McKenzie, Chris Best, and Jairaj Sethi) provided further details about the Pro program, highlighting its diversity – over half women, one-third people of color – and asserting that no participants hold views “that can be reasonably construed as anti-trans.”

Addressing Perceptions of Bias

The founders acknowledged that limited information about Pro program participants has led to misinterpretations and inaccurate assumptions about Substack’s business strategy.

Content Moderation and Censorship

Substack affirmed its commitment to enforcing content guidelines against harassment and threats while maintaining a “hands-off approach to censorship.”

Greenwald's Dismissal of Criticism

Glenn Greenwald dismissed the criticism as “petty Substack censors,” characterizing the dissent as a protest against the platform’s refusal to remove writers he disagrees with.

The Importance of Transparency

Annalee Newitz, in a personal communication, emphasized the need for transparency. “If Substack won’t tell us who they are paying, we can’t figure out who on the site has grown their audience organically, and who is getting juiced,” Newitz explained.

Verifying Claims and Assessing Organic Growth

Newitz further stated that a lack of transparency hinders the ability to assess whether individuals are building audiences authentically or benefiting from platform-driven promotion. It also prevents verification of Substack’s claims regarding the diversity of viewpoints on the platform.

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