No, they hardly do. The problem is that everyone gets so many newsletters a day, that it’s hell of a job just reading the important ones. And if they just happen to be more sophisticated than just reading text and associated downloading large graphics etc., 99,9% land in my trashcan.

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Although the number of newsletter subscribers is globally declining I would still not consider NLs to be obsolete as they are the usual way for the “elderly” to get their information. RSS in blogs is still taken as geek-toy sort of thing and has not yet convinced the general public. 
What you can do is take wordpress, integrate it seemlessly into your corporate presentation on the web and offer the blog articles to be subscribed to via email. I am just on a project where we have utilized that technology and are about to go live. I am keen to see what the result will be. 
With these modules you can either send every post via email as soon as it’s published or you can kick out a digest weekly. This way you will not fill up people’s inboxes with too much stuff. 
Combining the two will really save some time on the publishers end. 
If you need more help please feel free to contact me.