While legacy media has struggled, newsletters have emerged as a bright spot in a declining industry.
Digital news and media subscriptions grew 3x in 2020, according to Zuora’s latest report that analyzed 700 companies.
But can they keep the COVID-bump going? Many people think so.
Why it's important: As most indie hackers know, newsletters are a vital tool for growth. With a relatively small time investment, newsletters can invigorate a fledging brand's reputation, connecting them to a broad audience of potential buyers, industry experts, and like-minded people.
The news: That's why Twitter wants a piece of the action. The social media platform recently announced they acquired Revue for an undisclosed amount. The tech giant hopes to capitalize on the burgeoning creator economy that's estimated at $10 billion and relies on email newsletters to generate revenue.
Revue 101: Founded in 2015, Revue is a newsletter tool for content to creators that allows them to retain ownership of an email list, profile page, and engagement data. Owning that data could be valuable for users that want to connect with or analyze their audience outside of the platform.
Twitter didn't reveal Revue's user or subscriber numbers. After launching its subscription service in 2018, Revue had about 2,000 paying customers with about 30,000 readers.
In buying Revue, Twitter will compete more directly with Substack. In September, Substack had more than 250,000 paying customers and its top 10 publishers raked in $7 million collectively in annualized revenue.
What it means: With Revue now a part of its flock, Twitter will offer users the ability to sign up for and create newsletters as well as host conversations with their fans. The move aims to not only address users’ lacking ownership of their audience but also provide creators a revenue stream for their content. No word yet if Twitter will allow users to export their lists.
Bottom line: The Revue deal means that support for the creator economy is going mainstream. Indie hackers are leading the push for more influence on systems in which they've traditionally lacked power, demanding the ability to monetize their creativity, insights, and products. Platforms are starting to listen.
Creators will now be better positioned to move Twitter followers off the platform.
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What they’re saying: Twitter product lead Kayvon Beykpour and VP of publisher products Mike Park wrote that the newsletter function will “work seamlessly” in Twitter and elevate creators. But will it really?
“Revue will accelerate our work to help people stay informed about their interests while giving all types of writers a way to monetize their audience – whether it’s through the one they built at a publication, their website, on Twitter, or elsewhere. ... Bringing Revue to Twitter will supercharge this offering, helping writers grow their paid subscribers while also incentivizing them to produce engaging and relevant content that drives conversations on Twitter.” —Twitter product lead Kayvon Beykpour and VP of publisher products Mike Park
Twitter’s latest: Newsletters are not the only new tool Twitter has announced. The American microblogging service is also beta testing Spaces, which appears to be a blatant attempt to copy the wildly successful audio-based social app Clubhouse.
Facebook is next: Of course, Facebook doesn't want to be left on the sidelines. In the latest iteration of “big tech copies upstarts,” Facebook is reportedly building a newsletter tool for writers, publishers, and content creators.
Coming soon: Facebook hopes to launch in the summer of 2021, allowing users to curate lists and manage paid subscription services. With 2.7 billion users, it’s hard not to imagine rapid adoption. Will it end up competing with SubStack, Gumroad, Patreon, and others?
Only time can tell.
What are your thoughts on Twitter and Facebook entering the newsletter market? Will you stick with alternatives? Share your thoughts below
I'm thinking about this carefully as I evolve letterdrop.com. Trying to provide the most value to serious newsletter writers who treat it as a business through an affordable subscription (vs pure take rate) instead of going for the masses, where I think Twitter, Facebook will obviously win through distribution.