As AI tools enable millions of amateur creators to produce professional-quality content, platforms like YouTube and Spotify become less reliant on a small number of mainstream media giants. This diffusion of content creation shifts bargaining power away from traditional studios and labels to the platforms themselves.

A16Z invested in Substack believing that providing writers with a monetization tool would unlock a new supply of high-quality content. This new supply would, in turn, create its own demand, rather than competing in the existing market for free content.

As media companies scale, they are increasingly run by finance or legal executives who prioritize pulling business levers over creative vision. This shift creates a market opportunity for smaller, passion-driven companies led by actual creators who are less focused on pure optimization.

The value of a large, pre-existing audience is decreasing. Powerful platform algorithms are becoming so effective at identifying and distributing high-quality content that a new creator with great material can get significant reach without an established following. This levels the playing field and reduces the incumbent advantage.

A16Z's Substack investment was a bet on a 'supply-driven market.' By providing a monetization mechanism for writers, the platform brought new, high-quality content into existence that previously couldn't exist, which in turn created new consumer demand that wasn't visible before.

In a world saturated with AI-generated content, work that is verifiably human-made will command a premium. Similar to how consumers seek out organic food, audiences will actively seek and value the authenticity, personality, and craftsmanship of human-driven content.

Medium is no longer competing for professional content creators building media businesses. Instead, its CEO states the platform is focused on being the best place for "real people"—practitioners and individuals—to share valuable life and work lessons without the pressure of becoming a full-time writer.

With traditional news models broken, investigative journalism's future may lie with independent creators. Platforms like YouTube and X now offer monetization for this high-risk content. While lacking institutional support like legal teams, these solo journalists can build a direct audience and sustainable business, disrupting a struggling industry.

The future of the creator economy favors deep trust over broad reach. As institutional trust fails, audiences will gravitate towards creators who are authentic leaders in a specific vertical. Success will be measured by community loyalty ('true believers'), not just follower count.