2PM - No 686: The Substack Question

The News / Why We're Freaking Out About Substack: Substack has captivated an anxious industry because it embodies larger forces and contradictions. For one, the new media economy promises both to make some writers rich and to turn others into the content-creation equivalent of Uber drivers, even as journalists turn increasingly to labor unions to level out pay scales.

With a new $65 million round of venture capital, Substack has been able to lure writers with big profiles to leave their jobs and start newsletters. With more personalities on the platform, Substack has more options to monetize. It can start bundling newsletter packages, for instance, or dish out advancements that end up paying out less than its subscription cut would have in the same time period. Morning Brew’s Austin Rief has a good breakdown on the financials behind Substack.

This has become common for platforms, to spend money bringing the best creators. But whether or not that means Substack becomes responsible for the content its users publish with its technology is the increasingly pressing question. Some journalists departed for Substack specifically so they wouldn’t be associated with a media brand. But can Substack avoid becoming one? A marketplace's products do end up becoming its brand. 

Editor's Note: Ben Smith casually broke the news of Gawker's return in this one. 

Hip-Hop loves Cash App, and that might be why Jack Dorsey bought Tidal

Sociology / GQ: “Cash App’s explosion actually came out of Atlanta, which makes perfect sense,” says Web Smith, founder of 2PM Inc. and an eCommerce analyst. “You can see a graph of this boom occurring from Atlanta and along what I call the SEC South. It’s Georgia, Alabama, Mississippi, Tennessee, Florida, Texas, which is incredibly odd for a technology company. It shows that outside of Silicon Valley, outside of the west coast and New York City, the real adoption was occurring because of Black culture in the south.”

The Archives: In Defense of Jack Dorsey 

As data privacy becomes more of a concern, a pivot towards commerce is the intuitive path. We’re beginning to see this with Facebook’s emphasis on Instagram’s cart capabilities or Google’s acquisition of Pointy and its emphasis on marketplace development. Imagine if Twitter had a CEO with practical knowledge of both of these disciplines. Would its board dismiss that chief executive?

Is LA's Platform the future of retail?

Retail Real Estate / Vogue Business: Called Platform, the new quarter defies many of the terms by which we define retail. It’s neither mall nor department store, neither traditional Main Street nor high street plumbed with independent owners. It’s an appealing array of these elements, with unusual merchandise partnerships and online connectivity thrown in.

The Archives: here's 2PM's take on this strategy from March 2020 (🔐2PM)

Away just launched a collection of travel essentials: What to know

DTC Brands / NBC News: Notably, Away highlights that the collection’s sleep mask, blanket and neck pillow are designed with 37.5 Technology, which utilizes dynamic thermoregulation technology to help keep your body at a core temperature of 37.5 degrees Celsius (99.5 degrees Fahrenheit).

Ad Rem but curated by Andrea Hernández / Snaxshot. This week's nine products feature the digitally-native snack products that she most enjoys. It's the first of a number of collaborations between 2PM and other newsletters. Subscribe to her work, she's one of the best. 

The green and gold of the Masters jacket are a federally registered trademark now

Business Law / The Fashion Law: This connection that the general public makes between the Green Jacket and the Masters tournament is precisely why Augusta National, Inc. landed a win of its own last month when the U.S. Patent and Trademark Office (“USPTO”) agreed to register the colors of the jacket as a trademark after initially refusing to do so earlier last year.

The Archives: On the 2019 Masters and what it taught me about linear commerce (2PM) 

How long is the long tail

Media Foresight / Hip City Reg: In this beautifully done storyboard (done in partnership with Elena Burger), Reggie walks through the long tail of media and the progression of an industry – from the fear of consolidation to individuals themselves becoming the institution. Elena is a force, I responded to one of her wonderful reports here at The Long Middle. 

Vice is entering the affiliate space with a firm line between edit and commerce

Linear Commerce / Digiday: Vice’s new affiliate vertical is called Rec Room, named jointly for its product recommendations content and after a “groovy 1970s basement,” according to Vice Media’s chief digital officer Cory Haik.

The next big thing in biohacking

DTC Health / Thingtesting: A small crop of startups are promising to let you in on all the secrets hidden in your blood sugar – from what’s causing those fog-inducing highs and hangry lows, to how your body responds to both exercise and periods of rest.

The Archives: 🔐 On DTC and Integrated Health

Amazon surpasses 10% of U.S. digital ad market share

Advertising / Wall Street Journal: Amazon.com Inc.’s share of the U.S. digital ad market grew to 10.3% last year from 7.8% in 2019, according to a new report from research firm eMarketer.

Building the last mile: eCommerce powers industrial real estate

Logistics / MarketWatch: Demand still outweighs supply, Salzer noted, but there’s more industrial space under construction than ever before.

'Gawker' is coming back from the dead

Media / Fast Company: Gawker shut down in 2016 after Hulk Hogan won a privacy suit against the publication for publishing a sex tape featuring the wrestler.

Fashion brands craft their own newspapers for A/W 2021

Linear Commerce / Wallpaper: Loewe’s ‘A Show in the News’ concept featured a time capsule-inspired metal tin, with a newspaper folded inside. Its headline, ’The Show Has Been Cancelled’, was a humorous nod to the brand’s lack of a physical runway presentation.

Away is about to launch a travel accessories capsule in the midst of lingering pandemic. Is co-founder Jen Rubio on to something? The answer lies in the macroeconomic statistics.

On March 16, 2020, domestic air travel reached a notable point in its crash: slow at first, and then all at once. Daily traveler throughput fell to under 1 million. Just a month later and certain days saw only 90,000 Americans travel the country’s airports. Over a year later, as travel returns, so will the brands, marketplaces, and other businesses that serve the industry. It’s shaping up to become a hot luggage summer.

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