Adam Ryan on why newsletters are a channel, not a business model
Mar 10, 2025
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Adam Ryan, CEO of Workweek, critiques the overheated newsletter market. He argues newsletters are becoming commoditized as their numbers outpace readers. Ryan cautions that reliance on paid growth leads to fleeting engagement without real audience connection. He emphasizes the importance of expanding beyond email, highlighting successful businesses that integrate community and events. The conversation reveals newsletters as a starting point for building connections, not a sustainable standalone business model.
The newsletter market is oversaturated, with more publications than readers, highlighting the necessity for unique audience engagement strategies.
Technological shifts, such as AI impacting inbox management, challenge the traditional view of newsletters as a direct connection to audiences.
Successful newsletters are evolving into community-driven platforms, extending their reach and monetization beyond email to include events and services.
Deep dives
Shifting Landscape of Email Newsletters
The email newsletter market is currently experiencing a significant transformation, with a notable increase in the number of newsletters—particularly those focused on AI. There are around 3,000 AI-related email newsletters on one platform, highlighting the growing competition for audience attention. Despite email being seen as a direct connection to audiences, changes in distribution channels driven by technology and AI threaten this notion. The discussion indicates a potential future where AI influences how inboxes are managed, which may benefit users but negatively impact many newsletter operators.
AI's Impact on Content and Consumer Behavior
AI is redefining content creation and consumer behavior, pushing newsletters to adapt to curated and relevant information. The ease of creating newsletters leads to a crowded market, where low-quality content can dominate, posing risks for businesses that do not differentiate themselves. Historical trends reveal that as barriers to entry lower, the number of undifferentiated products rises, leading to competition that challenges even established players. It is crucial for newsletter creators to maintain high standards and unique value propositions to avoid being swept away in the wave of AI-generated content.
Community as a Key Component
Building a community around newsletters is becoming essential for long-term success, moving beyond merely disseminating content. The creation of spaces, such as Slack channels, allows for greater engagement and support among readers, facilitating deeper connections. A strong, engaged audience can foster relationships that bolster the effectiveness of newsletters and enhance the subscriber experience. The broader trend suggests that successful media entities are prioritizing community interactions as a critical element of their strategy, aligning with the evolving landscape characterized by content sharing and collaboration.
Winners and Losers in the Evolving Landscape
In the competitive email newsletter market, the disparity between winners and losers is becoming more pronounced. Successful entities tend to diversify their content channels, integrate community elements, or pivot to more sustainable business models, such as event-driven strategies. In contrast, newsletters that offer little differentiation and rely solely on aggregation are likely to falter, as consumers increasingly seek unique and meaningful interactions. Brands with established reputations or those focusing on niche communities are positioned favorably, as they offer more value amid rising market saturation.
The Future of Newsletters and Market Adaptation
The email newsletter model is evolving, with many operators recognizing newsletters are merely a starting point for broader engagement strategies. The shift towards community-focused models, similar to successful direct-to-consumer brands, highlights the need for newsletters to explore alternative distribution methods. As the landscape becomes more competitive and algorithmically controlled, newsletters that promote genuine engagement and relationships will likely thrive. Ultimately, adapting to changing consumer expectations and market dynamics will determine the longevity and success of newsletter ventures.
Adam Ryan, CEO of Workweek, joined me this week to discuss his recent warning that the newsletter sector is overheated. Some points from the conversation:
Newsletters are a commodity. The number of newsletters is growing faster than the number of readers. AI tools and cheap platforms like Beehiv have made launching one easy, but most newsletters lack true audience affinity.
The inbox is not really a direct connection. It’s a platform like any other, subject to change. Apple’s Mail Privacy Protection has broken open rates, AI tools like Superhuman summarize newsletters without opening them, and inboxes are being segmented, reducing visibility.
Paid growth is a weak foundation. Many newsletters rely on paid acquisition and cross-promotion. The moment that engine turns off, engagement often collapses because there’s no real audience connection.
Winners are thinking beyond email. The most successful publishers are building businesses around community, events, and services. Morning Brew, Workweek, and Lenny’s Newsletter all extend beyond just newsletters.
Newsletters are a starting point, not a business. They are an MVP—a way to build an audience—but real success comes from expanding into new distribution and monetization channels.
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