The year 2025 witnessed a seismic shift in the digital media landscape, marking it as the definitive year of the newsletter. Moving beyond the podcast boom of 2024, a diverse wave of creators—from pop icons and famed investors to major publications and global brands—embraced direct-to-consumer newsletters, fundamentally changing how audiences connect with content.
Stars and Legacy Media Embrace the Newsletter Revolution
What began as a platform for independent writers has evolved into a major media ecosystem. Prominent figures across industries are now building their own media businesses to foster intimate connections with their audience. Pop sensation Charli XCX launched her Substack in 2025, publishing a viral piece on the "realities of being a pop star." Similarly, the legendary investor Michael Burry started "Cassandra Unchained" in November, sharing his investment theories and warnings about an AI bubble, amassing over 76,500 subscribers with tiers priced at $39 monthly or $379 annually.
Esteemed journalist Tina Brown, former editor of Vanity Fair and The New Yorker, overcame initial hesitation to launch her "Fresh Hell" newsletter on Substack in 2024. It now boasts more than 75,000 subscribers and a healthy revenue stream, featuring her sharp commentary on news and culture. This trend wasn't limited to individuals. Major publications like The New Yorker, New York magazine, The Wall Street Journal's opinion section, and the Paris Review all introduced Substack newsletters in 2025. Retail giants like American Eagle and Shopify also joined the fray.
Platform Wars: Substack and Beehiiv Drive Growth
The surge in creator activity fueled massive growth for newsletter platforms. Substack reported 5 million paid subscriptions in early 2025, a staggering 67% increase from the previous year. The company, which takes a 10% cut of creator revenue (with payment processor Stripe taking another 4%), raised $100 million in the summer at a $1.1 billion valuation. While experiencing consistent revenue growth, it is not yet profitable, focusing on expanding into sports, international markets, and new revenue streams like advertising sponsorships.
Its younger competitor, Beehiiv, emerged as a formidable player. Founded in late 2021, it saw its number of individual newsletters and sites grow by over 60% in 2025 to 140,000, while its revenue nearly doubled to $28 million. Beehiiv, which charges fees based on subscriber count and for using its ad network, attracted major names like Newsweek and Time, who moved their newsletter portfolios to the platform. They were joined by life coach Jay Shetty and actor Arnold Schwarzenegger, whose "Arnold's Pump Club" boasts over 1 million subscribers. Beehiiv has raised $50 million to date and is considering additional investment.
The Driving Forces Behind the Boom
Several key factors are propelling this newsletter renaissance. Media consumers are increasingly seeking information from trusted, individual online voices rather than faceless institutions. As Dave Jorgenson, who left The Washington Post to launch Local News International on Beehiiv, noted, audiences now trust individual journalists more than established outlets. This shift is compounded by publishers losing reliable traffic from social media giants like Facebook and facing challenges from AI summaries on Google search.
"There is a stronger push on owning your audience and distribution," said Tyler Denk, CEO and co-founder of Beehiiv. Substack co-founder Hamish McKenzie echoed this, noting that legacy brands now see newsletters as a growth opportunity rather than a threat. Newsletters offer a direct line to readers, enabling paywalls, ad sales, and community building. The model has proven successful, birthing media outlets like The Bulwark and The Free Press, the latter of which was sold to Paramount for $150 million in early 2025.
As the space evolves, platforms are expanding their offerings. Substack is increasingly functioning as a social network, while Beehiiv is investing in website-building tools and pushing into podcasting, allowing clients to repurpose content into audio. The newsletter, in its modern, multimedia-inclusive form, has firmly established itself as a cornerstone of the 21st-century media business.
