• Fortune, Thursday, May 7, 2009 9:30 AM

With the introduction of the $489 version of the Kindle electronic reader yesterday, the question of whether Kindle will overhaul the news industry may soon be answered. The new Kindle's 9.7-inch display with auto rotation makes it possible to read newspapers and magazines in a format resembling the traditional paper versions.

Starting this summer, The New York Times, The Washington Post and The Boston Globe will offer the Kindle DX at a reduced price to selected readers in exchange for long-term subscription commitments. News execs hope the Kindle DX may enable a return to the subscriber model and provide a format that is more conducive to displaying advertising.

However, some publishers take issue with Amazon controlling the relationship with subscribers and setting prices. Gannett, USA Today and News Corp. are reportedly aligning themselves with Amazon's competitors, which include Plastic Logic and the Sony Reader. Hearst is developing its own e-reader, which is expected to launch this year.

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