Substack's new feature allows authors to impose paywalls on their entire chat or select topics for paying or founding members.
Substack launched Chat 18 months ago, enabling writers and dedicated fans to communicate directly. According to TechCrunch, the platform believes paywalled chats will encourage personal, troll-free chats as a premium product for users. Active Chat users are 12% more likely to keep their memberships, according to Substack.
Chat Competes with X
Writers using the platform can now access paywall chats or threads. Free subscribers and non-subscribers must upgrade to access paid chats.
In addition to the paywall, Substack is improving Chat to help big groups navigate. Chats now include a search tool to find old threads. Users will also receive thread alerts and response badges for tracking conversations. Substack also updates its backend systems to load new chats and answer in real-time, keeping users updated.
Since Chat's creation, Substack has sought to compete with Twitter (now X), especially with its latest improvements. Recent corporate blog posts noted that "many readers prefer the simplicity of Substack Chat to other platforms."
Substack added a Twitter-like "Notes" function a year ago, in addition to Chat. This feature displays short-form information in a Twitter-like feed, including posts, quotations, comments, photos, and videos.
Substack's Recent Controversies
This development comes after Substack writers expressed concerns over the platform's "follow" option, which lets users follow writers without subscribing, as reported by The Wrap. Some writers believe the feature is hurting subscriptions.
Since the feature's launch in August 2023, writer Jeanna Kadlec has seen a drop in subscribers. She says Substack's follow button terminated her "stratospheric growth" in late 2023. Some writers have reported flatlined subscriber growth, echoing these worries.
Substack claims the following function strengthens writers' connections to its "valuable readers." A representative said that the subsequent growth and subscription growth are linked: It said the tool will "help maximize subscriptions" by connecting writers and users. They stressed that subscribing is the "most important type of relationship" and that the follow button is only a beginning point.
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Substack encourages followers to become subscribers. However, some writers have noticed a disconnect since the feature's implementation.
In another controversy, after The Atlantic revealed white supremacist publications on Substack Inc.'s platform in late November, the firm was on the defensive. The report outraged authors and readers, and some major Substack users left, Bloomberg reported.
Co-founder Hamish McKenzie announced on December 21 that he would delete newsletters encouraging violence but leave extreme content in place to promote open discourse, escalating tensions.
The content moderation discussion at a newsletter-driven media firm drew attention, emphasizing Substack's relevance despite its tiny size.
This Nazi problem reveals Substack's business concept. Substack gives writers more control over distribution and subscription lists than standard web publishing platforms. This freedom lets them switch newsletter services if they are unhappy. Many readers may receive newsletters from writers who leave without notice unless alerted.
As it grows, Substack has added social network-type services, including a Twitter feed and tailored email suggestions. These changes increase the number of subscribers to free and paid newsletters, making the platform more appealing to writers seeking audience growth.
