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Thinking of investing in the newsletter space?
Here& #39;s your executive summary -- everything you need to know in 3 mins or less, including:
-How the media industry is changing
-How the business model works
-Major funding & acquisition deals
-etc
Based on 6+ months research
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧵" title="Thread" aria-label="Emoji: Thread">...
Here& #39;s your executive summary -- everything you need to know in 3 mins or less, including:
-How the media industry is changing
-How the business model works
-Major funding & acquisition deals
-etc
Based on 6+ months research
The media industry is changing.
Since & #39;08, newspapers have experienced a 68% drop in ad revenue. Down to roughly HALF what it was in 1956.
https://www.brookings.edu/research/local-journalism-in-crisis-why-america-must-revive-its-local-newsrooms/">https://www.brookings.edu/research/...
Since & #39;08, newspapers have experienced a 68% drop in ad revenue. Down to roughly HALF what it was in 1956.
https://www.brookings.edu/research/local-journalism-in-crisis-why-america-must-revive-its-local-newsrooms/">https://www.brookings.edu/research/...
Papers are folding left and right.
In 2020, Berkshire Hathaway sold its 30-paper news unit to Lee Enterprises for $140m.
Today, 200 US counties have neither daily nor weekly news papers.
In 2020, Berkshire Hathaway sold its 30-paper news unit to Lee Enterprises for $140m.
Today, 200 US counties have neither daily nor weekly news papers.
Newsletters may fill this void:
Across 40 countries, ~16% of readers get news via email (~21% in US).
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌏" title="Asien-Australien auf dem Globus" aria-label="Emoji: Asien-Australien auf dem Globus"> Worldwide: ~4B email users with ~100m joining each year.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇺🇸" title="Flagge der Vereinigten Staaten" aria-label="Emoji: Flagge der Vereinigten Staaten"> US: ~252m unique email users w/ ~4-6m joining each year.
Still lots of opportunity. https://bit.ly/3xmugdp ">https://bit.ly/3xmugdp&q...
Across 40 countries, ~16% of readers get news via email (~21% in US).
Still lots of opportunity. https://bit.ly/3xmugdp ">https://bit.ly/3xmugdp&q...
COVID had a huge impact on newsletter signups.
@TheAtlantic added 90k paying subs between March and May 2020.
@SubstackInc grew to 250k+ paying subscribers by Dec. Reportedly 500k+ today.
https://backlinko.com/substack-users ">https://backlinko.com/substack-...
@TheAtlantic added 90k paying subs between March and May 2020.
@SubstackInc grew to 250k+ paying subscribers by Dec. Reportedly 500k+ today.
https://backlinko.com/substack-users ">https://backlinko.com/substack-...
2020 also saw lots of high profile journalists spin up their own newsletters:
Long-time print publications are making major bets on email too:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🗞️" title="Eingerollte Zeitung" aria-label="Emoji: Eingerollte Zeitung"> NYT shifted from ad-driven to primarily subscription-driven revenue
https://abs.twimg.com/emoji/v2/... draggable="false" alt="☕" title="Heißgetränk" aria-label="Emoji: Heißgetränk"> Business Insider bought a controlling stake in Morning Brew for $75m
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📣" title="Anfeuerungsmegafon" aria-label="Emoji: Anfeuerungsmegafon"> Forbes announced it& #39;s working on newsletter publishing tools
NYT shifted from ad-driven to primarily subscription-driven revenuehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="☕" title="Heißgetränk" aria-label="Emoji: Heißgetränk"> Business Insider bought a controlling stake in Morning Brew for $75mhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📣" title="Anfeuerungsmegafon" aria-label="Emoji: Anfeuerungsmegafon"> Forbes announced it& #39;s working on newsletter publishing tools" title="Long-time print publications are making major bets on email too:https://abs.twimg.com/emoji/v2/... draggable="false" alt="🗞️" title="Eingerollte Zeitung" aria-label="Emoji: Eingerollte Zeitung"> NYT shifted from ad-driven to primarily subscription-driven revenuehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="☕" title="Heißgetränk" aria-label="Emoji: Heißgetränk"> Business Insider bought a controlling stake in Morning Brew for $75mhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="📣" title="Anfeuerungsmegafon" aria-label="Emoji: Anfeuerungsmegafon"> Forbes announced it& #39;s working on newsletter publishing tools" class="img-responsive" style="max-width:100%;"/>
The Online News Association further legitimized the space by adding an "Excellence in Newsletters" category to its annual awards.
(congrats to @JuddLegum who took home the very firsthttps://abs.twimg.com/emoji/v2/... draggable="false" alt="😉" title="Zwinkerndes Gesicht" aria-label="Emoji: Zwinkerndes Gesicht">) https://twitter.com/revue/status/1308406339098619905">https://twitter.com/revue/sta...
(congrats to @JuddLegum who took home the very first
Here& #39;s how the business model works:
You make money via...
-Free subscriptions (monetized via ads)
-Low-cost subscriptions
-High-cost subscriptions
Readers move like this:
Free -> Low-cost -> High cost
Much more on this here: https://twitter.com/damn_ethan/status/1381969678399049730">https://twitter.com/damn_etha...
You make money via...
-Free subscriptions (monetized via ads)
-Low-cost subscriptions
-High-cost subscriptions
Readers move like this:
Free -> Low-cost -> High cost
Much more on this here: https://twitter.com/damn_ethan/status/1381969678399049730">https://twitter.com/damn_etha...
Let& #39;s talk about roadmaps for hiring, growing, and scaling revenue.
Broadly speaking, newsletters grow through 3 key phases:
0 - 10k Readers: Finding product fit
10k - 100k Readers: Monetizing
100k - 1m+ Readers: Scale
Here& #39;s a look at how Morning Brew& #39;s revenue evolved.
Broadly speaking, newsletters grow through 3 key phases:
0 - 10k Readers: Finding product fit
10k - 100k Readers: Monetizing
100k - 1m+ Readers: Scale
Here& #39;s a look at how Morning Brew& #39;s revenue evolved.
2 things often happen when a newsletter passes 100k subscribers:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> Failed deliveries start to cut into revenue at this point, so they often upgrade their technical stack to fix.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Make their first technical hire.
Here& #39;s a closer look at MB& #39;s team size over time.
Here& #39;s a closer look at MB& #39;s team size over time.
Failed deliveries start to cut into revenue at this point, so they often upgrade their technical stack to fix.https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Make their first technical hire.Here& #39;s a closer look at MB& #39;s team size over time." title="2 things often happen when a newsletter passes 100k subscribers:https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> Failed deliveries start to cut into revenue at this point, so they often upgrade their technical stack to fix.https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Make their first technical hire.Here& #39;s a closer look at MB& #39;s team size over time.">
Failed deliveries start to cut into revenue at this point, so they often upgrade their technical stack to fix.https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Make their first technical hire.Here& #39;s a closer look at MB& #39;s team size over time." title="2 things often happen when a newsletter passes 100k subscribers:https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> Failed deliveries start to cut into revenue at this point, so they often upgrade their technical stack to fix.https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Make their first technical hire.Here& #39;s a closer look at MB& #39;s team size over time.">
Here& #39;s one more look, showing Morning Brew& #39;s hiring roadmap vs revenue.
If you& #39;re hiring, or advising a portfolio company hopefully you find these helpful.
If you& #39;re hiring, or advising a portfolio company hopefully you find these helpful.
As for major deals -- I worked on this one for a while, but they just don& #39;t translate well to tweet form.
So here& #39;s a doc with a bunch of data on industry leaders, funding, acquisitions, and people to follow (including other investors in this space)
https://docs.google.com/document/d/1SHXAA21O8-r1zJMBUNx4rBeWjARpw58lL42WiyNrkZ8/edit?usp=sharing">https://docs.google.com/document/...
So here& #39;s a doc with a bunch of data on industry leaders, funding, acquisitions, and people to follow (including other investors in this space)
https://docs.google.com/document/d/1SHXAA21O8-r1zJMBUNx4rBeWjARpw58lL42WiyNrkZ8/edit?usp=sharing">https://docs.google.com/document/...
If you found this interesting or helpful, follow me ( @damn_ethan) and check out http://trends.co"> http://trends.co .
We& #39;ve got 300+ pages of distilled research & examples to share over the next 38 days.
DM if you have questions or want me on your podcast. Happy to dish!
We& #39;ve got 300+ pages of distilled research & examples to share over the next 38 days.
DM if you have questions or want me on your podcast. Happy to dish!
TL;DR
-Newspapers are folding left and right
-Newsletters might fill the void
-COVID led to a huge subscription bump
-Large companies like Forbes & NYT are bullish
-Newsletters grow through 3 main phases
-Hiring goes Editorial > Technical > Revenue
-100k subs is a crucial time.
-Newspapers are folding left and right
-Newsletters might fill the void
-COVID led to a huge subscription bump
-Large companies like Forbes & NYT are bullish
-Newsletters grow through 3 main phases
-Hiring goes Editorial > Technical > Revenue
-100k subs is a crucial time.
