Observed Signal · Feb 4, 2026 · Platform Strategy · Source: Storytelling Edge · Impact: 3/5 · Sentiment: Positive
Hamish McKenzie on Substack's Newsletter-First Strategy
Hamish McKenzie, Substack co‑founder, appears on The Art of the Zag podcast to recount Substack’s founding, explain its paid‑newsletter business model, and discuss platform design, creator ownership and the challenges posed by generative AI. He traces his path through Tesla and Kik to co‑founding Substack with Chris Best and Jairaj Sethi, describes the core insight that customers (readers) — not advertisers — should pay writers, and explains that Substack publishers control payment (via Stripe), mailing lists and content export. McKenzie outlines why network effects plus direct subscriber relationships can support niche journalism and creator livelihoods, and addresses AI-era risks and possible verification signals for human authors. He also mentions his upcoming book, Super Skill, about storytelling in the AI age.
Substack’s paid‑newsletter model and emphasis on publisher ownership shift incentives away from ad‑driven social platforms; this matters to publishers, creator monetization, and how the industry responds to generative AI and platform design.
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Key Takeaways & Evidence Grounding
- Substack was co‑founded by Hamish McKenzie, Chris Best and Jairaj Sethi (origin story described from 2017-era founding).
- Substack’s core product is paid subscription email newsletters where the audience (subscribers) is the customer rather than advertisers.
- Publishers on Substack use Stripe for payments and retain ownership of their payment relationships and mailing lists, with the ability to export or disconnect.
- Hamish McKenzie discussed generative AI as both a challenge and an opportunity, and said Substack is exploring verification/signals to help readers know when content is human‑produced.
- McKenzie recounted prior roles at Tesla and Kik and announced his forthcoming book, Super Skill, about storytelling in the AI age.
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Substack's Chris Best: Embrace Controversy, Prioritize Quality
Chris Best, CEO and cofounder of Substack, spoke in a fireside chat with a16z speedrun GP Andrew Chen about Substack’s founding, product philosophy, content moderation and the impact of AI on creators. He traced Substack’s origin to an essay and early feedback from future cofounder Hamish McKenzie, described a product-building framework of holding a bold long-term vision alongside concrete next steps, and defended the company’s principled stance favoring freedom of the press and speech despite controversy. Best argued AI will transform creative work but won’t replace human taste, and noted AI coding tools reached genuinely transformative quality by late 2024. He also recounted Substack’s early validation when its first customer, Bill Bishop, generated $100,000 in revenue within hours of launch.
Newsletter Hits 100,000 Subscribers
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Weekender: AI Surveillance and New Substack Newsletters
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