E-readers like Amazon's Kindle DX represent a way for news publishers to cut costs in addition to capturing new readers and revenue streams. Newspapers are drawn to cutting general print and
circulation costs, which often represent 30% to 50% of their total costs. In an e-reader model, this distribution would cost the publisher virtually nothing. Dallas Morning News
James Moroney thinks e-readers give newspapers a new lease on life.
By 2012, Forrester anticipates an e-reader market potential of 12 million people. In comparison, daily newspaper
circulation was roughly 48 million copies in 2008. So far, The New York Times, The Boston Globe
and The Washington Post
offer subscriptions on the Kindle DX.
Post is working on a trial in which the paper subsidizes the cost of the DX -- currently going for a hefty $489 at retail -- as part of a bundled subscription. The missing link, however, is
the advertising model. "The biggest unknown right now is, how much are advertisers willing to pay for an ad on an e-reader," says a Cox Media executive.
of reading a newspaper in a print format still appeals to many people and publishers would be foolish to discount the many readers who still like packaged, edited content. E-readers' strength
is that they are closer to the print product than content delivered on a Smartphone or even on the Web.?
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