"The Ownership Economy & Future of Media" with Hamish McKenzie + Connie Loizos (SG Global 2023)

TL;DR

Substack’s ownership economy centers on paid subscriptions that send money to writers rather than advertising that rewards attention. Hamish McKenzie describes Notes as a discovery tool for sharing short and long posts, images, comments, and links, while defending writers’ ability to distribute their work freely. Read on for his views on Twitter’s restrictions, free speech, content moderation, and Substack’s broader cultural ambition.

Transcript

foreign ly happy to be sitting down with you because is my microphone working yeah um we had talked about getting coffee like five years ago when you first started a sub stack and um I mean it's really incredible we never did get coffee I should we're doing it now yeah we're doing it now um but it's incredibly what you've built this company that's ... Read More

Key Insights

• 🛀 Substack's expansion with features like "Notes" and podcasts shows a shift towards becoming a cultural engine beyond newsletters.
• 🔨 Prioritizing tools, network engagement, and destination offerings strengthens Substack's support for writers and growth opportunities.
• ❓ Despite market challenges, Substack maintains a writer-focused approach, emphasizing independence and empowering creators.
• 😥 The platform's differentiation from traditional social media lies in its ad-free, subscription-based model that prioritizes writers' success.
• 👨‍💼 Financial support mechanisms like "Sub Roll" and community rounds help writers establish their businesses and build sustainable revenue streams.
• 🥶 Substack's commitment to free speech principles sets it apart by focusing on changing the content model rather than heavy-handed content moderation.
• 🌱 Future plans include exploring video content and sustaining growth through independent strategies without reliance on traditional fundraising models.

Questions & Answers

Q: What is Substack’s vision for the ownership economy and future of media?

Substack aims to build a new economic engine for culture around paid subscriptions and money going to writers. Hamish McKenzie contrasts this model with advertising and attention-based platforms, arguing that the different incentive structure will change how the network works.

Q: What is Substack Notes?

Notes is a Substack feature for sharing short-form posts, long-form posts, images, comments, and links. It is designed to help writers get discovered and attract new subscribers.

Q: How is Substack Notes different from traditional social media feeds?

Notes may look visually similar to existing social media feeds, but McKenzie says it is not based on advertising or attention. Its economic model is based on paid subscriptions, with money going to writers.

Q: Is Substack Notes intended to replace Twitter?

McKenzie says Notes was not intended to be a Twitter killer. It was introduced as a feature within Substack for its writers, and the strong response from Twitter surprised the company.

Q: How did Twitter respond to the launch of Substack Notes?

The interviewer says Twitter restricted Substack links and sometimes warned that they could be unsafe. McKenzie describes the episode as disappointing because writers became collateral damage and could not freely share their work.

Q: Did Twitter’s restrictions affect attention around Substack Notes?

Yes. McKenzie says the response brought Notes much more attention than its planned low-key launch otherwise would have received, and he adds that Substack was not sorry about that outcome.

Q: What is Hamish McKenzie’s position on free speech and content moderation?

McKenzie calls free speech an important principle and says he cannot separate it from a free press. He argues that stronger and more sophisticated content moderation has been treated as the answer to misinformation and polarization, while Substack focuses on changing the underlying engagement and attention-based model.

Q: What problems does McKenzie associate with the attention economy?

He links engagement-based attention systems to misinformation, fake news, polarization, divisive behavior, and eroding trust. He says these effects undermine people’s ability to understand one another and work together on difficult problems.

Summary & Key Takeaways

• Substack, a platform known for newsletters, has expanded with features like "Notes" for sharing content and a growing podcast community.

• They prioritize tools, network interaction, and destination offerings to empower writers and grow their businesses.

• Despite challenges like market conditions, Substack remains focused on supporting writers and maintaining its independent vision.