Substack has joined the platforms that want to benefit from this situation with the possible ban of TikTok. The company announced that it has launched a $20 million “creator acceleration fund” to attract content creators. Thanks to this program, content creators are invited to Substack with the guarantee that they will not lose income during the platform switching process. In addition, participants are provided with strategic and business development support and are given early access to new features of the platform.
In its blog post explaining why it launched this initiative, Substack said, “We have seen that producers who stand out with their video, audio and text content increase their audience, revenue and influence thanks to Substack’s network effects. “We created this fund to support these achievements,” he said.
For some time now, Substack has been trying to promote itself as a Patreon-like creator platform, moving beyond just a newsletter distribution service. The blog post emphasizes that content creators can build their own internet homes on Substack, so their content and follower base can be controlled independently of platform administrators or advertisers. In addition, it is pointed out that social media platforms cannot provide a reliable space for producers due to frequently changing policies, bans and political tensions.
However, this model offered by Substack also has some difficulties. For example, producers who want to switch from TikTok to Substack will have to build their following from scratch. It is not possible to transfer followers from TikTok directly to Substack. Additionally, as Substack’s content focuses change over time, producers are forced to turn in different directions depending on these priorities. The platform, which initially focused on newsletters, has turned to innovations such as micro blogs, full-fledged websites and live broadcast features over time.
Substack’s history is also full of various controversies. In 2022, the use of some newsletters containing Nazi content on the platform for monetization caused intense criticism. The company was forced to remove some of this content, but this step came after public pressure and criticism from high-profile writers.
In addition, Substack suddenly fired an editor in 2022, a development that was seen as contradictory to the platform’s promise to support independent journalism.
Substack has launched other similar programs before
Substack’s new $20 million fund isn’t the first financial incentive it’s launched to attract content creators. It had previously tried to bring well-known names from the world of journalism to the platform with high salaries, health insurance and various benefits, within the scope of a program called “Substack Pro”. However, this program ended in 2022. Hamish McKenzie, one of the founders of Substack, described this program as a “seed financing” and stated that they offer journalists the chance to avoid financial risk in the process of starting their own business.
While the future of TikTok remains uncertain, it remains a matter of curiosity whether Substack will be able to attract content creators with this funding and what impact this initiative will have on the platform.