Paid newsletter pricing disruption, Instagram Reels underperforming + OK Boomer | E1562 | Summary and Q&A

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September 16, 2022
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This Week in Startups
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Paid newsletter pricing disruption, Instagram Reels underperforming + OK Boomer | E1562

TL;DR

Beehive, a newsletter platform, raises $1.6 million in funding as it aims to disrupt the pricing model used by Substack and other similar platforms.

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Key Insights

  • 🤱 The pricing model used by platforms like Substack may become increasingly challenged by more cost-effective options like Beehive, which charges a flat fee instead of a percentage of revenue.
  • ❓ Beehive's success highlights the demand for newsletter platforms and the potential for growth in the creator economy.
  • 💍 The combination of multiple content distribution channels, such as newsletters, YouTube, and TikTok, is becoming increasingly important for creators to engage with their audience.
  • 😤 Building strong content teams and partnerships with skilled editors and producers is crucial for the success of media companies in the current digital landscape.
  • 💍 Newsletters, although often considered outdated, can still be a valuable tool for creators to engage with their audience in a more private and in-depth manner.
  • 😵 Collaboration and cross-pollination between different content formats and platforms can enhance the reach and impact of creators' work.

Transcript

all right everybody it's time for our Friday variety show what do we have on Deck Molly Wood fry yay we have got a super interesting series a all about a newsletter platform called beehive and it leads into a super interesting conversation about how you as your startup need to prepare for Price disruption yes I mean look out uh the sub stack pricin... Read More

Questions & Answers

Q: How does Beehive aim to disrupt the pricing model used by Substack and similar platforms?

Beehive charges a flat fee instead of taking a percentage of revenue, making it a more cost-effective option for creators and publishers. This disrupts the pricing model that platforms like Substack use, where they take a percentage of revenue, potentially resulting in higher fees for users.

Q: How has Beehive's revenue growth been since 2021?

Beehive has experienced 30% month-over-month revenue growth since 2021, indicating strong traction and uptake of its platform among creators and publishers.

Q: What is the significance of Beehive's funding raise?

The additional funding of $1.6 million brings Beehive's total funding to $4.2 million, allowing the platform to further develop its offerings and expand its user base. This funding demonstrates investor confidence in Beehive's model and potential for growth.

Q: How does Beehive compare to other platforms in the market?

Beehive competes with platforms like Substack, offering creators and publishers an alternative option for creating and monetizing newsletters. Beehive's disruptive pricing model sets it apart from competitors and could make it a more appealing choice for creators.

Summary

In this video, Molly Wood and the team discuss the newsletter platform Beehive and the importance of being prepared for disruptive pricing. They also talk about the struggles of Meta's Reels campaign on TikTok and the need for startups to adapt to changing platforms and business models. They also touch on the role of newsletters in the creator economy and the value of partnerships with experienced operators like Smooth Media.

Questions & Answers

Q: What is the video about?

The video discusses the Beehive newsletter platform and the importance of handling disruptive pricing as a startup.

Q: Why is Beehive significant?

Beehive is a newsletter publishing platform that aims to be the best place for creators and publishers to create and monetize newsletters. It has seen significant revenue growth and is expected to exceed $1 million in ARR by the end of the year.

Q: How does Beehive compare to Substack?

Beehive's pricing is significantly lower than Substack's. While Substack takes 10% of revenue, Beehive takes 0%. This makes Beehive a much more cost-effective option for creators.

Q: How does Beehive's pricing affect its competition?

Beehive's disruptive pricing could pose challenges for other platforms like Substack, which charge higher fees. Creators may choose to switch to Beehive to save on costs.

Q: What are the implications for startups?

Startups need to be prepared for disruptive pricing in their respective industries. They should understand the value they provide and be adaptable to changes in platforms and business models.

Q: Why is Meta struggling with its Reels campaign on TikTok?

Meta's Reels campaign on TikTok has faced challenges, with users spending significantly more time on TikTok compared to Instagram. This highlights the importance of understanding user behavior and adapting strategies accordingly.

Q: What does the discussion on Meta's struggles say about the business landscape?

It shows that even industry giants like Meta can face challenges and need to adapt to changing market dynamics. It also highlights the need for diverse revenue streams and not relying solely on one platform.

Q: What is the role of newsletters in the creator economy?

Newsletters provide creators with additional touchpoints and allow them to engage with their audience outside of the main platform they operate on. They can also serve as a source of revenue through advertising and other partnerships.

Q: Why do creators choose to partner with Smooth Media?

Smooth Media offers expertise and support in building media businesses for creators. They provide experienced operators who can help scale their businesses and create additional revenue streams.

Q: How do newsletters benefit creators?

Newsletters allow creators to expand their reach and engage with their audience in a different format. They can provide valuable content and serve as a monetization tool through partnerships and advertising.

Takeaways

The video highlights the importance of being prepared for disruptive pricing as a startup and the need to adapt to changes in platforms and business models. Beehive serves as an example of a disruptive platform that offers lower pricing compared to its competitors. The struggles faced by Meta in its Reels campaign on TikTok emphasize the need for diversifying revenue and understanding user behavior. Newsletters play a significant role in the creator economy by offering additional touchpoints and monetization opportunities. Smooth Media provides support and expertise to creators in scaling their media businesses and creating lasting value.

Summary & Key Takeaways

  • Beehive, a newsletter publishing platform, has raised $1.6 million in funding, bringing its total funding to $4.2 million.

  • The platform, founded by a team of former Morning Brew engineers, aims to be the best place for creators and publishers to create and monetize newsletters.

  • Beehive has experienced 30% month-over-month revenue growth since 2021 and expects to exceed $1 million in ARR by the end of the year.

  • The platform's pricing model, which charges a flat fee instead of a percentage of revenue, aims to disrupt the pricing structure of platforms like Substack.

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