Johnson247′s Blog

May 10, 2009

“Dreaming of a Paperless Society”

Filed under: Business Models,Internet,Newspapers,Technology — Rachelle S. Johnson @ 3:01 am
Tags: ,
Image from I-StockPhoto

Image from I-StockPhoto

Amazon introduced a larger version of the Kindle, called the Kindle DX, the electronic book reader. Many knew that you could read books with the original, but now you can read newspapers and other documents with the updated version. Amazon’s chief executive, Jeffrey P. Bezos, said the new Kindle was a step in the direction of a long-dreamed-of “paperless society.”

The New York Times, The Boston Globe and the Washington Post will offer long time subscribers a reduced price on the Kindle DX for those who live in areas where the papers are not available. Speaking of prices, the new larger Kindle will cost buyers $489. That’s without the discount.

I don’t understand how the three newspapers will make enough money off the deal.  The Kindle DX will not carry advertisements. I wonder how much profit they will realize off this venture. It’s a huge drawback and a step backwards for the business model for newspapers.  They won’t have the cost of print, but Amazon gets 70 percent of the take.

The three newspapers seem to assume those who can’t get the paper in their area also don’t have the Internet. McGraw-Hill is also negotiating with Amazon to carry textbooks through the Kindle DX. Would they buy the larger more expensive Kindle, because you can also read books? That’s how they may be able to get more people to buy another device.  Of course that could mean a lot less books, newspapers etc. 

I know environmentalists are very happy.

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