Will Twitter Kill Substack?

A clown car that fell into a goldmine. That’s what Facebook CEO Mark Zuckerberg once called Twitter. Despite its ubiquity in entertainment and media, Twitter has perennially punched below its weight financially. Executive turnover has been high. Development velocity has been low. Yet clowns can be scary, especially when they’re gunning for your goldmine.

Twitter’s New Paywall

In a podcast last year, Substack’s co-founder and CEO Christ Best said that newsletters were one of the few places left online where readers could have a relationship that wasn’t controlled by big tech. No longer. On January 26, Twitter acquired Revue, a Dutch newsletter start-up and Substack competitor. Facebook is circling newsletters too.

It’s a smart acquisition. Twitter now directly benefits from creator economy growth. Writers already use the platform to connect with readers and build their audiences. Of the 528 accounts I follow on Twitter, 111 write on Substack (this probably isn’t representative, but still). Revue closes the loop and monetizes existing behavior. The acquisition makes Twitter a one-stop-shop for writers offering acquisition, distribution, hosting, and promotion. It also generates subscription revenue, diversifying Twitter away from advertising. Lastly, it opens up paid promotion opportunities. Writers can use ads to grow subscribers and revenue.

The old meme was that Substack is Twitter’s paywall. Now, Twitter is Twitter’s paywall. The bull case is that Twitter ads can be to…