Contentinople - Erin Barker - News Bits: Can a New Kindle Save Newspapers?

Written by Erin Barker

Monday, May 4. 2009 at 10:35 AM EDT Post a comment

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Amazon.com Inc. (Nasdaq: AMZN) will unveil a new, large-screen Kindle meant to save print journalism, this Wednesday, on the site of The New York Times's 19th century headquarters.

Several news organizations -- including The New York Times, naturally, are expected to be involved in the unveiling. [Ed. note: Though the Times isn't even commenting to the Times on the matter.] This new version of the Kindle, which allows users to view publications much the same way they'd appear in print, is meant to help these organizations save millions on the cost of printing and distribution.

"We are looking at this with a great deal of interest," John Ridding, the chief executive of The Financial Times told NYT. "The severe double whammy of the recession and the structural shift to the Internet has created an urgency that has rightly focused attention on these devices."

According to NYT, newspapers could use this device to "hit the reset button and return in some form to their original business model: selling subscriptions, and supporting their articles with ads."

But, even if this is possible, publishers have several complaints about the Kindle. This new version will likely still not include a color screen, and publishers dislike the fact that Amazon controls subscription pricing.

In other newspaper news:

News Corp. (NYSE: NWS), Plastic Logic Ltd. , and Apple Inc. (Nasdaq: AAPL) have all been readying similar large-screen devices to display newspaper and magazine content, though it's doubtful now they'll make it to market before Amazon's. Plastic Logic's device, for instance, is slated to roll out next year.

A recent report from The Wall Street Journal suggests these devices could provide an alternative to the Kindle, however, offering layouts that accommodate ads and giving publishers control over subscriptions.

On Saturday, Warren Buffett warned shareholders of Berkshire Hathaway Inc. that newspapers won't recover from their recent troubles, because they lack a sustainable business model. "For most newspapers in the United States, we would not buy them at any price," he said. "They have the possibility of nearly unending losses... I do not see anything on the horizon that sees that erosion coming to an end."

One suffering newspaper, The Boston Globe, reached an agreement with owner The New York Times Co. this morning, after the parent company threatened to shut the paper down unless its unions agreed to $20 million in cuts.

Tags: Amazon, Apple, Business, Product Launch, Technology

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