The email newsletter service of this blog is powered by FeedBlitz and I’m a pretty happy customer.
The other good alternative to FeedBlitz is FeedBurner Email but I have a strong feeling that Google will merge this service with Google Groups in the long run. We have seen no new features in FeedBurner Email since long and second, the service is only available for sites that syndicate feeds via FeedBurner.
Coming back to FeedBlitz, there’s both good news and bad news. The good news is that FeedBlitz’s RSS newsletter service will continue to be free (supported by ads in the email newsletter) for all existing publishers.
The bad news is for new publishers who are planning to shift their blogs only now to FeedBlitz – you’ll pay a monthly subscription fee that can be as high as $30 if you have anywhere between 1,000-2,499 email subscribers. The newsletter for paid subscribers will be free of ads of course.
Founder Phil Hollows admits that FeedBlitz "needs revenues" to fund the service and clearly, the adverting inside email model did not prove to be very successful experiment.
Going forward, I think FeedBlitz may find it a bit tough to attract small publishers (especially bloggers who don’t generate revenues from their blog) but the big blogs may not mind shelling out few bucks for all the extra features (like customized design, news flash, etc) that are missing in FeedBurner email.