Explaining a16z's Investment in Substack

Companies like Memberful, Patreon, Ghost or others could become the platform that Substack is aiming to build

High-performing creators may churn from Substack to build their own cheaper backend

Ads can be placed on any web page and web pages can be created ad infinitum. there is no supply constraint.

Ad networks, most notably Facebook and Google, provided solutions to advertisers’ buying problems. The main thing they provided was more data on consumers.

There may be fewer niche communities online and lower intent to pay for a subscription

Journalists might want to be under a brand instead of on independent platforms

Substack has a business model that creates unique unit economics. Substack isn’t trying to build the next The Economist or The Athletic. It’s not branded; the consumer doesn’t need to know what Substack is. Instead, the growth will come from consumers resonating with individual creators.

Email could be the wrong entry into paid content. Audio, video or something else could be a better wedge

“Infinite” ad inventory is an important concept created by the internet. The scarcity on the number of newspaper ads (paper space) or TV ads (commercial time) meant that inventory was limited.