The Newsletter Gold Rush Is Over — at Least for Substack
Substack built its reputation as the promised land for independent writers: no editors, no advertisers, just you and your readers. But that promise is starting to crack.
A growing number of prominent publications are quietly packing up and heading to rival platforms like Ghost and Beehiiv — and the reasons they're giving paint a complicated picture of a company that may have grown too fast without listening to its most important stakeholders: the writers.
Last month, The Ankler — one of Substack's most-read publications covering Hollywood's inner workings — became the latest high-profile departure. Its editors cited a desire for more control over their site, their brand, and crucially, their business model. It's a complaint that has become increasingly common among creators who once enthusiastically championed the platform.
The Real Cost of 'Free'
Substack's core pitch has always been simple: publish for free, and the platform takes a 10% cut of any paid subscriptions. For small creators just starting out, that's a reasonable deal. But for publications pulling in tens of thousands of subscribers and meaningful revenue, that cut starts to feel less like a partnership and more like a landlord relationship.
Critics have started calling it the "Substack Tax" — the portion of a writer's livelihood that flows back to the platform no matter how big or independent they become. At scale, this can mean handing over tens of thousands of dollars annually with no cap and no negotiation.
Platforms like Beehiiv and Ghost have moved aggressively to fill that gap. Ghost is open-source and charges flat monthly fees regardless of revenue. Beehiiv offers competitive rates and a suite of growth tools aimed at monetizing newsletters in ways Substack doesn't support — including advertising integrations, referral programs, and detailed analytics.
Social Features Nobody Asked For
Beyond the economics, departing writers have pointed to Substack's increasing pivot toward social features — its Notes product, a Twitter-like feed, and algorithmic discovery tools — as a distraction from what made the platform compelling in the first place.
For writers who came to Substack to escape the engagement-bait dynamics of social media, watching the platform inch toward that model has been disorienting. Some describe it as a betrayal of the original value proposition.
The Nazi Newsletter Problem Didn't Help
Substack's image took a significant hit in 2024 when it emerged the platform was hosting and profiting from newsletters promoting Nazi ideology. The backlash was swift, and while Substack eventually removed some of the most egregious accounts, the controversy left a lasting stain — and gave writers already considering a move the final push they needed.
For those who had built their reputations on credibility and trust, being on the same platform — and sharing revenue infrastructure — as hate speech publications wasn't a comfortable position.
What Comes Next
The newsletter space is maturing, and with maturity comes competition. Substack still has a massive audience network and strong brand recognition, but it's no longer the only serious option. As more established writers leave, they take their audiences with them — and prove that platform lock-in isn't as strong as Substack once assumed.
For independent creators weighing their options, the message from those who've left is consistent: the grass is, in fact, greener elsewhere.
Source: The Verge
