Posted by: euromediablog | May 11, 2009

Amazon’s Kindle to rescue newspaper industry?

Amazon’s Kindle  has already become the most popular word in the prayers of U.S newspaper executives for better business models in the information society. According to recent surveys, kindle users’ willingness to pay for online content is higher than that of the average internet user.

These results have already urged American newspaper giants to consider subsidising the distribution and acquisition of Amazon’s gadget in the search for paying customers. Similar to the developments in the telecommunications industry in the beginning of the millenium, the newspaper publishers will subsidise the purchase of the Kindle, as long as its new owner completes  a long term digital newspaper subscription.

So far, so good. The practical application of this model, however, might face some severe difficulties. According to financial times these are:

– the high price of the electronic reader (about 500$)

– the lack of enough investment capital

– splitting the subscription- revenues between Amazon and the content provider

– the lack of a Kindle advertising market

– the limited graphics-, colours- and resolution options which make Kindle-Versions look rather obsolete in comparison with their internet counterparts.

The idea of splitting digital newspaper use from the world wide web is principally a step in the right direction and could thus allow a gradual replacement of the traditional newspapers by E-newspapers. But would the kindle-based editorial content be able to marginalise the free online information in the long term? It’s a question of investments and patience.

For further Information: financial times and meedia.de

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