The Digiday Podcast: Episode Summary Title: How to Grow a Creator-Based Newsletter Business, with Puck’s Sarah Personette
Release Date: March 4, 2025
Host: Kamika McCoy & Tim Peterson
Guest: Sarah Personnet, CEO of Puck

1. Introduction to the Episode

In this episode of The Digiday Podcast, hosts Kamika McCoy and Tim Peterson delve into the multifaceted world of digital media with a special focus on the challenges and innovations within live streaming, DE&I (Diversity, Equity, and Inclusion) policies, Google's evolving search algorithms, and the burgeoning newsletter business. The highlight of the episode is an insightful conversation with Sarah Personnet, CEO of Puck, who sheds light on how her company navigates the dynamic landscape of creator-based newsletters.

2. Hulu's Oscars Streaming Failures

Discussion Overview: Tim Peterson kicks off the episode by recounting his frustrating experience streaming the Oscars on Hulu, highlighting significant technical glitches that disrupted the live broadcast.

Key Points:

• Streaming Interruptions: Hulu experienced multiple outages during the Oscars, causing viewers to be abruptly redirected to the Roku home screen and ultimately ending the broadcast prematurely.
• User Reactions: The mishaps sparked widespread frustration on social media platforms like Blue Sky and X (formerly Twitter), with many users expressing their annoyance and considering canceling their Hulu subscriptions.
• Advertising Impact: Peterson speculates on the potential loss of valuable advertising opportunities, especially during high-stakes moments like the Best Picture announcement.

Notable Quotes:

• Tim Peterson [02:52]: “Hulu had to tweet about it, acknowledging issues. I guess it got resolved within the first two hours of what was a nearly four-hour broadcast.”
• Tim Peterson [07:36]: “It’s a really big blunder because you just wonder like, how is this possible.”

Insights:

• The episode underscores the persistent reliability issues with streaming platforms, especially during live events, raising questions about the future reliability of digital streaming compared to traditional cable.

3. DE&I Updates in Media Companies

Discussion Overview: Kamika McCoy shifts the conversation to recent developments in DE&I policies among major corporations, focusing on Paramount's rollback amidst the changing political climate influenced by former President Trump's executive orders.

Key Points:

• Paramount’s DE&I Rollback: Paramount has scaled back its DE&I initiatives, aligning with a broader trend among corporations wary of regulatory scrutiny under the current administration.
• Industry-Wide Impact: This move is part of a larger pattern where companies like John Deere, Apple, and Comcast are reevaluating their DE&I strategies to mitigate potential legal and financial repercussions.
• Media Influence: The conversation touches on how media entities, including the Washington Post and CBS, are adjusting their editorial policies in response to political pressures and legal challenges.

Notable Quotes:

• Tim Peterson [12:40]: “Paramount rolling back its DE&I seems to be part of this wave of companies reading the political climate and saying, all right, I don't.”
• Kamika McCoy [14:51]: “We've got to play by the rules of the new administration. So there's these, you know, two, which is why I called it a DE and I tango at this point.”

Insights:

• The rollback of DE&I initiatives reflects a tense interplay between corporate policies and political environments, emphasizing the delicate balance companies must maintain to support inclusivity while avoiding regulatory backlash.

4. Google’s Policy Changes Affecting Product Review Sites

Discussion Overview: The podcast addresses Google's recent updates to its site reputation abuse policies and the subsequent impact on product review websites, including notable publishers like CNN and Forbes.

Key Points:

• Policy Changes: Google has tightened its regulations, prohibiting certain content from appearing in search results, which adversely affects publishers relying on product reviews.
• Impact on Publishers: Sites focused on commerce and product reviews are experiencing a decline in referral traffic from platforms like Reddit and Google, challenging their visibility and revenue streams.
• Future of Commerce Publishers: The rise of AI-powered search platforms like ChatGPT poses additional threats, as these technologies can provide direct answers without directing users to external review sites.

Notable Quotes:

• Tim Peterson [19:25]: “If ChatGPT can be crawling the sites that you mentioned, I can just ask ChatGPT, hey, what I'm in the market for a new coffee maker, what should I get?”
• Kamika McCoy [21:10]: “It does make you question like what then becomes the opening for, you know, an AI-powered search platform.”

Insights:

• Google's evolving search algorithms and the advent of AI-driven search tools are significantly disrupting traditional content publishers, necessitating innovative strategies to maintain visibility and user engagement.

5. Conversation with Sarah Personnet on Puck's Growth

Discussion Overview: Sarah Personnet, CEO of Puck, discusses her company's strategy in building a successful creator-based newsletter business. She elaborates on Puck's unique approach to leveraging journalistic talent, maintaining open rates, and ensuring sustainable growth.

Key Points:

• Newsletter-Centric Model: Launched in 2021, Puck focuses predominantly on newsletters, emphasizing direct, personalized communication between journalists and subscribers.
• Journalistic Growth: Under Sarah's leadership, Puck expanded its team to 17 journalists, each anchoring specific verticals like entertainment, fashion, politics, and art.
• Subscriber Engagement: Puck boasts an impressive 70% open rate, significantly higher than the industry average of 30%, indicating strong reader engagement and content value.
• Compensation and Incentives: Puck’s compensation model includes equity ownership, bonuses for new and retained subscribers, fostering a culture of accountability and motivation among journalists.
• Operational Excellence: Emphasizing revenue per head (RPH), Puck maintains a lean operational structure, utilizing a proprietary content delivery system to streamline newsletter production and distribution.
• Future Expansion: Puck plans to venture into tech, particularly AI, and continue expanding its verticals based on reader demand and journalistic excellence.

Notable Quotes:

• Sarah Personnet [25:40]: “Audiences no longer want just this mass kind of public environment that they're communicating in. They want something that's more direct and that's more personalized.”
• Sarah Personnet [37:10]: “Everyone has equity in the company. This is a media platform that's owned and operated by journalists.”
• Sarah Personnet [46:23]: “We experienced over 30% in terms of paid subscriber growth over the last year, which was really exciting.”
• Sarah Personnet [56:36]: “Lauren Sherman’s written at least one piece in the past week about this Nike skims deal. So there probably is some of that as well.”

Insights:

• Puck’s success is rooted in its journalist-centric approach, high subscriber engagement, and innovative operational strategies. By maintaining a lean structure and incentivizing journalist performance, Puck effectively differentiates itself in a saturated market, ensuring sustainable growth and profitability.

6. Key Takeaways and Insights

• Reliability of Streaming Platforms: The Hulu Oscars fiasco highlights the ongoing challenges digital platforms face in delivering seamless live experiences, potentially pushing consumers back to traditional cable services.

• Navigating DE&I amidst Political Shifts: Companies are re-evaluating their DE&I strategies in response to changing political landscapes, balancing inclusivity with regulatory compliance.

• Evolving Search Ecosystems: Google's policy updates and the rise of AI-driven search tools are reshaping the visibility and viability of traditional content publishers, urging them to innovate or risk obsolescence.

• Sustainable Growth through Journalism: Puck exemplifies how a focused, journalist-driven model with high engagement rates and lean operations can thrive in the competitive digital media space.

• Future of Media Companies: The intersection of technology, policy, and content creation will continue to define the success and evolution of media companies, with adaptability and innovation being paramount.

Conclusion

This episode of The Digiday Podcast offers a comprehensive exploration of the current challenges and opportunities within the digital media landscape. From the technical struggles of live streaming the Oscars on Hulu to the strategic growth of Puck’s newsletter business, the discussion provides valuable insights for brands, agencies, and publishers navigating the digital age. Sarah Personnet's perspective underscores the importance of a journalist-centric approach and operational excellence in building a resilient and profitable media company.