The State of Substack 2025

1. Platform Growth and Metrics

In 2025, the state of Substack reflects meaningful growth, but also meaningful challenges.

First, the good news: Substack has crossed major milestones. The company reported surpassing 5 million paid subscriptions on the platform in early 2025.  Compare that to prior years, and the pace of growth is notable. It shows that there is still demand for direct-to-reader newsletters and creator-owned subscription models.

At the same time, the creator base has expanded.

More writers, podcasters, video creators and “traditional media refugees” have migrated to Substack, seeking independence from legacy publishers. For example, a 2023 Wired article noted that many star reporters were moving to Substack, but that subscription fatigue might be creeping in.  

The growth in creator count doesn’t always map to equal growth in revenue for all.

From a macro perspective, Substack is now widely recognised as a serious player in the creator economy. According to Wikipedia, it now houses “millions of active readers and more than 5 million paid subscriptions” as of 2025.  That breadth is important: a healthy creator ecosystem needs both top earners and a long tail of smaller creators.

Still, it’s not all sunshine. Growth figures such as 5 million paid subs sound impressive, but when spread across perhaps tens of thousands of newsletters, the average paid-subscriber count per creator remains modest. This implies that many creators will struggle to make a living from the platform alone—something we’ll explore more in Section 4.

Overall: Substack in 2025 is growing, gaining relevance, but the metrics remind us of the structural realities of subscription-based creator businesses.

2. Funding, Valuation & Business Model

To understand The State of Substack 2025, you have to look under the hood at how Substack funds itself and what its business model is. In July 2025, Substack raised a $100 million Series C, bringing its valuation to about $1.1 billion.  That marks the company as a “unicorn” in the creator-platform space.

But what is the business model? Substack takes a 10% cut of creators’ subscription revenue, plus the standard payment-processing fees.  In return, Substack provides the infrastructure: newsletter hosting, payments, analytics, distribution, and some marketing/legal tools.

Yet, as some commentators pointed out, the economics still raise questions: one article noted that even with a $45 million revenue base (at some point), it was far short of what investors typically expect for a billion-dollar-plus valuation.  For creators, the deal is attractive in that they keep 90% of their revenue (versus some platforms which take more). But growth pressures on Substack itself may eventually influence how favourable those terms remain.

Substack is also experimenting with non-subscription revenue streams (e.g., advertising & sponsorships), albeit cautiously. As noted in the commentary on enshittification, the risk is that Substack, like many platforms, might gradually erode favorable creator terms to support growth and investor returns.  

In short: Substack has strong funding, a clear business model, but is entering a phase where scaling both creators and readers—and making the numbers work—will be critical.

3. From Newsletters to Full Creator Platform

Originally, Substack was primarily a newsletter platform: you wrote, pressed send, and people got your email. But by 2025, the platform has evolved into a fuller creator ecosystem. The shifts include:

• Video & audio support: The platform is increasingly positioning itself not just for text newsletters but also video, podcasts, and creator-driven network effects. For example, The Verge reported in January 2025 that Substack launched a $20 million creator accelerator fund aimed at attracting TikTok creators and video/audio-first talent.  
• Features for experimentation: Substack announced new tools like A/B testing for headlines, upgraded creator profiles, and richer composition tools.  
• Platform as home base: Substack increasingly markets itself as the creator’s home on the web—one where you own your subscribers, content, and monetisation mechanism, rather than relying on intermediaries. This narrative appears prominently in their recent blog posts.  

This transition reflects a broader trend in the creator economy: newsletters are no longer just “email blasts” but integrated media businesses. For Substack, it means competing not only with other newsletter platforms but with broader creator tools (video, community, membership). And that means the platform must deepen its toolkit, distribution, analytics, and differentiation.

4. Creator Economy Realities

Understanding The State of Substack 2025 means facing both promise and pragmatism for creators. On the promise side: some creators are earning substantial revenue. Wired cites Substack’s CEO Chris Best claiming “more than 50” creators on the platform were pulling in $1 million or more per year.  That’s impressive, and it signals that the top end of the platform is real.

However, the challenge lies in the long tail. Many creators have modest subscriber counts and revenue. For example, discussions on Reddit show new creators plotting growth to 6,000 subscribers or just earning five paying subscribers by year-end.  The reality: subscriber-based models demand labour, consistency, niche clarity, and often outside promotional effort.

Let’s unpack some of the key economy realities:

• Niche matters: Successful newsletters often target very specific, well-defined audiences (e.g., investment newsletters, politics, specialized hobbies). Broad-based newsletters struggle more.
• Paid conversion is hard: Free subscriber counts may balloon, but getting readers to pay is a much steeper path.
• Discovery & competition: As more creators and newsletters flood the platform (and beyond), standing out and being found becomes harder.
• Diversification remains wise: Relying solely on one platform is risky. Many creators still sell products, membership tiers, events, or use multiple channels.
• Platform risk: Even though Substack offers strong creator-friendly terms now, creators still face risk if platform rules change, their content gets moderated, or discoverability shifts.

Thus, for creators navigating Substack in 2025, the message is: yes—opportunity exists. But only for those who treat it as a business, build relationships, focus on niche and value, and manage risk.

5. Competitive Landscape & Platform Risks

In The State of Substack 2025, competition and platform risk are central. As Substack grows, several pressures become apparent:

• Subscription fatigue: With more newsletters, memberships and paid content in the digital era, readers may push back on paying for many services. Wired highlights this concern in its coverage, noting “subscription fatigue is only getting worse.”  
• Platform diversification: Other platforms are innovating creator tools, such as membership features, communities, audio/video platforms and social-apps. Substack must stay ahead of that curve.
• Terms & dependency: While creators appreciate the derivation of control (owning audience, monetisation), they still depend on Substack for infrastructure and distribution. Should Substack change policies (pricing, moderation, discoverability), creators could be exposed. The “move off” stories illustrate this.  
• Monetisation squeeze for platform: Substack’s business model (keeping 10%) works if many creators scale, but there is also pressure from investors and growth metrics. This may lead to shifting terms, exploring ads, sponsorships or new fees. Commentary on “platforms gradually shifting the deal” points to this risk.  
• Content moderation & reputational risk: Platforms often face backlash around controversial content. Substack is not immune—creator behaviour, moderation frameworks and public perception all matter.

In short, while Substack remains one of the more creator-friendly platforms, the competitive and risk environment is intensifying. Creators who ignore these dynamics do so at their peril.

6. Audiences & Reader Behaviour in 2025

Crucial to The State of Substack 2025 is how readers behave: Are they discovering newsletters? Are they willing to pay? Let’s look at the key patterns:

• Discovery remains a challenge: Unlike social-media feeds where content can go viral, newsletters depend heavily on referrals, existing communities, and niche word-of-mouth. With more crowded inboxes and many subscription offers, getting noticed demands strategy.
• Paid subscription growth is real: As noted earlier, 5 million paid subscriptions is a strong signal. But what’s more relevant is how many readers convert, and what they value. Quality, unique voice, community and tangible benefits drive conversions.
• Diversified consumption habits: Readers increasingly expect multi-media experiences: email + audio + video + community. Substack’s expansion into those formats (see Section 3) reflects that.
• Payments mindset: While some readers are willing to pay for independent voices, there’s still price sensitivity and expectation of value. Free vs. paid tiers, premium content and bonuses remain key tactics.
• Relationship over broadcast: Many of the best newsletters emphasise direct reader relationships—Q&A, community chat, exclusive perks. That helps retention and reduces churn.

For creators and the platform alike, understanding audience behaviour in 2025 means recognising that it’s less about quantity (large reach) and more about quality (engaged paying readers) and relationship.

7. Strategic Recommendations for Creators

Given everything above, here are strategic recommendations for anyone looking to operate on Substack in 2025:

1. Find a clear niche and audience – Narrow topics with passionate audiences perform better than broad-general newsletters.
2. Build community, not just broadcast – Use comment features, chats, membership perks to deepen reader connection.
3. Diversify income sources – Don’t rely solely on paid subscriptions; explore merch, events, courses, sponsorships.
4. Own your data and export regularly – Even though Substack is creator-friendly, export your subscriber list and backups, to reduce risk.  
5. Balance free + paid content smartly – Offer value for free to build trust, but reserve premium content for paying subscribers.
6. Promote across platforms – Use social media, collaborations, guest posts, referrals to drive discovery.
7. Monitor changing platform terms – Stay aware of changes in Substack’s policy, fee structure, discoverability algorithm.
8. Track metrics and churn – Subscriber growth is good, but retention/churn matter. The cost of acquiring a paid subscriber must make sense.
9. Stay agile – Move with trends (audio/video/community) rather than fixating on only long-form email.
10. Consider multi-platform presence – While Substack may be your home base, consider parallel presence elsewhere for reach and risk mitigation.

Following these strategies can position creators for success in the evolving Substack ecosystem of 2025.

8. The Future Horizon: What’s Next for Substack?

Looking ahead, here are some likely developments shaping The State of Substack 2025 and beyond:

• More multimedia expansion – Expect stronger video/audio tools on Substack, deeper integration of podcasts, livestreams and communities.
• Growth in creator networks & verticals – Substack could evolve from individual newsletters to mini-networks of creators, cross-promotion and bundles. Reddit discussions suggest this is predicted in 2025.  
• Exploring ad/sponsorship models – To scale, Substack may lean into advertising/sponsorship options more than pure subscription revenue, which could affect creator economics.
• Global expansion & localisation – While much of the traction has been U.S.-centric, we’ll likely see stronger efforts in other geographies and languages.
• Platform maturity & creator tools – Better analytics, retention tools, segmentation, and direct reader-creator interactions.
• Media ecosystem impact – As more creators shift to independence, traditional media may feel greater disruption; Substack and similar platforms may broker new creator-driven businesses.
• Sustainability test – The biggest “state” question: can the platform support a large number of profitable creators (not just the top 1%) and satisfy its investor growth expectations over time? Commentary suggests “time is running out” if only a handful of creators earn big.  

In short, Substack has momentum—but momentum alone doesn’t guarantee long-term equilibrium. The next few years will test whether we move from hype to sustainable creator‐economy infrastructure.

FAQs

Q 1: How many paid subscriptions does Substack have in 2025?

A: According to public reporting, Substack surpassed around 5 million paid subscriptions in early 2025.  

Q 2: What is Substack’s cut of creator revenue?

A: Substack currently takes a 10% cut of subscription revenue from creators (plus standard processing fees).  

Q 3: Can creators on Substack depend on it as their only income?

A: Some top creators can and do. But for many, relying solely on Substack is risky—successful creators often diversify income and emphasize community, niche, and retention.

Q 4: What types of content are now supported on Substack?

A: Beyond email newsletters, Substack supports audio, video, livestreams and community chat features. They’ve also launched a “creator accelerator fund” aimed at video/TikTok creators.  

Q 5: What are the main risks for creators on Substack in 2025?

A: Key risks include: subscription fatigue among readers, discoverability challenges, over-dependency on one platform, possible changes in Substack terms, and intense competition. See also commentary about “platforms gradually shifting the deal”.  

Q 6: Should I start a newsletter on Substack right now?

A: If you are clear about your niche, audience and value proposition, yes—it remains a good platform. But enter with realistic expectations: focus on building community, diversifying income, and owning your audience. Use it as a core base, not a sole reliance.

The Bottom Line

The State of Substack 2025 is one of promising growth, platform evolution, and creator opportunity—but also one of intense competition, economic realism, and strategic necessity.

For creators, it remains one of the best bets for direct-to-reader publishing and monetization.

For Substack, the challenge is scaling that promise to many more creators and readers, while maintaining favourable economics and trust.