The newsletter platform's latest update means that Apple users will have to purchase subscriptions via the Apple Store at inflated prices, and publishers will see delayed payouts. But it also undermines one of the platform's core selling points: migration of mailing lists
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Writers and publishers on newsletter platform Substack are facing an unwelcome dilemma amid new changes to mobile subscriptions.
In-app payments (IAPs) were launched this week, meaning Substack app users on iOS devices must purchase subscriptions via the Apple Store. As Apple charges 30 per cent, that inflates the total price. And publishers cannot opt out, either.
It also means the billing relationship belongs to Apple, undermining one of Substack's core selling points: migration of mailing lists. The change does not currently affect Android users, who remain unable to purchase subscriptions on the app. Media consultant Isabelle Roughol did a handy explainer on the topic, too.
Some publishers we spoke to declined to comment because they saw the move as inconsequential: it is better to give Apple users some functionality to subscribe than none at all. But others saw the move as heavy-handed and problematic.
It leaves an unsavoury choice for publishers: charge readers 30 per cent more with the markup, or take the 30 per cent revenue hit themselves. And the latter isn't sustainable, according to Ed Jennings, editor of local news newsletters Local Authority and Kent Current on Substack.
"One option is terrible for us, the other is terrible for our readers," he says.
The pricing disparity creates customer service headaches for publishers who must explain to confused subscribers why they're seeing different prices across platforms. Jennings noted that readers "are going to ask why they're being charged £85 when we're advertising a subscription of £60 across our materials."
For publishers outside the US, the situation is particularly stark. Unlike US creators who can offer both web-based checkout and Apple's system thanks to a recent court ruling (Apple vs Epic), international publishers must funnel all mobile subscribers through Apple's payment system. It is not yet clear how friction-free circumventing Apple will be, nor whether markets like the UK or EU will follow suit.
Beyond pricing, the changes significantly impact publisher cash flow and subscriber relationships. While traditional Substack subscriptions pay out within 4-11 days, Apple's system can take up to 45 days, creating potential strain for publications dependent on subscription revenue.
Substack has tools to help creators get their subscriber lists when they leave. But publishers who switch platforms would lose their paying subscribers - those subscribers would become free readers instead. Publishers would have to convince people to pay for subscriptions again on their new platform. This makes it hard for creators to leave Substack once they're established there.
"By far the biggest red flag is that subscribers gained this way aren't [exactly] portable if you leave," says Sam Shedden, creator of The Melbourne Snap newsletter and senior editor on Reach plc's off-platform newsletter project.
"That runs against the idea of creator ownership that Substack has built its brand on and will have many considering other platforms."
Mailing list portability was one of Substack's core selling points in its early days. A primary reason why trailblazing news publishers flocked to the platform was their confidence to scale through its network effects and then exit with their subscriber base intact.
Jennings sympathises, admitting that Substack helped him grow his news business. But the changes represent "the latest in a series of moves from Substack that move away from what drew us to the platform in the first place."
He expressed particular frustration with Substack's push toward social features and app usage that may not align with all publishers' audiences or business models.
While Substack appears to be prioritising mobile usage, Sheddon questioned how effective mobile usage truly is after noticing discrepancies in his own data. E-mail remains his top traffic referral source, 8x higher than from the Substack app. Yet the app is his top subscription referral source at 37 per cent. He said the figures "don't add up".
"Many organisations will wait and see for now," Shedden says. "This may drive individual creators into the arms of [competitors] Beehiiv and Ghost."
We approached Substack for comment, and they chose to provide background information instead.
