Substack's Rise Signals a Creator-Driven Media Revolution—Here's How to Invest

The media world is in the midst of a seismic shift—one where the value of content is no longer tied solely to the masthead it appears under. The Washington Post's flirtation with Substack isn't just a quirky partnership; it's a death knell for traditional media valuations and a rallying cry for the creator economy. Let me explain why this matters—and how you can profit.

The Washington Post's Move: A Survival Play, Not a Niche Experiment

The Post, owned by Amazon's Jeff Bezos, is burning through cash—$100 million in losses in 2023 alone. Its “Ripple” initiative, which uses Substack's platform to aggregate opinion pieces, isn't just about diversifying content. It's a desperate bid to retain talent and monetize directly. Why? Because Substack's model flips the script: writers keep 90% of subscription revenue, versus the paltry shares they might earn at a traditional outlet.

Think of it this way: If a Post writer can build a loyal audience on Substack while still contributing to the Post's opinion section, they're no longer just an employee—they're a revenue-generating asset. This dynamic could force media giants to rethink how they value writers, shifting power from corporations to individuals.

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Even though Substack is still private, its trajectory is undeniable. From its 2017 launch as a newsletter platform to its current status as a $1 billion+ disruptor (if rumors are to be believed), Substack has already reshaped how creators earn. The Post's partnership is a vote of confidence in this model—and a warning to legacy media.

The Broader Trend: Media Valuations Are Now a Function of Creator Value

Traditional media stocks like DISCA (Discovery Inc.), TWTR (Twitter/X), or even META (Meta) have been under pressure as ad revenues stagnate and audiences fragment. Meanwhile, platforms like Substack, Patreon, and TikTok are siphoning value directly to creators, bypassing middlemen.

Take the Post's writers like Katelyn Jetelina and Magdalene Taylor. Their Substack earnings—$10,000+ per month from subscriptions alone—are a fraction of what they might make if they left entirely. But by staying, they act as a bridge between old and new media. For investors, this means companies that empower creators, not just publish content, will thrive.

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The data won't lie: ad revenue for legacy media has flatlined, while platforms enabling creators to monetize directly are soaring. The Post's move is an admission that they can't compete with Substack's agility unless they embrace it.

Risks? Sure—but the Upside Is Massive

Substack isn't without flaws. Its hands-off approach to content moderation has led to controversies—remember the 2024 user revolt over extremist newsletters?—and it's still figuring out how to scale beyond text-based content. But here's the key: investors shouldn't bet on perfection, just momentum.

The Post's partnership is a proof point that even stodgy institutions see Substack's potential. As more media companies follow—The Daily Mail, Telegraph, and others are already on board—Substack's ecosystem grows stronger. And as creators demand fairer compensation, traditional media's valuation models will have to adapt.

Where to Invest Now

• Back Substack itself: While private, you can gain exposure through venture capital funds focused on creator platforms.
• Bet on creator enablers: Companies like Adobe (ADBE) (with its Creative Cloud) or Shopify (SHOP) (for creator commerce) are critical tools for the next-gen media ecosystem.
• Buy into media stocks that adapt: The Post's parent company (Amazon's media division) might see a bump if this experiment works. Disney (DIS), which owns Marvel and Star Wars, could also benefit by leveraging its IP through creator partnerships.

Final Takeaway: The Future Belongs to the Creators

The days of media empires built on printing presses and TV monopolies are over. The new kingmakers are the writers, podcasters, and TikTokers who command loyalty through authenticity—and platforms like Substack that let them keep the profits.

The Post's Substack pivot isn't just a partnership—it's a blueprint for survival. Investors who ignore the creator economy do so at their peril.

Action Alert: If you're in this for the long game, load up on companies that enable creators to monetize their audiences. The rest? They're relics in a world that's already moved on.

Data Note: Hypothetical valuations and growth figures are illustrative. Always consult a financial advisor before making investment decisions.