How the Next Kindle Could Save the Newspaper Business – Wired.com
The major problem of content provider today is to make money. Wheter it be in music industry, hollywood market or so many other, they all complain of the fall of their revenues.
But if we analyze the market today, and almost provider, we could see a reorganization of firm which make service provider bigger than content provider. And the balance of power make discussion more difficult : content providers don’t accept to be dominate, and it is understandable ! Imagine you were leader on a market, would you accept conditions of a news participant ! Sure you don’t, and you would try to make life harder for this new one… and on the other hand, competing against innovation and new society organization…
Let’s take the exemple of the Kindle. The new version release few days ago is bigger to improve the reading of newspaper. Tomorrow, the Kindle could be the efficient way to read books and newspapers on mobility. Amazon is introducing in the reading industry a value of the internet society : mobility. Working on this side, it tries to dominate some old competitors. On the other side, this business is based on two types of revenues : fees and advertising. Books are based on fees since ever, and the model isn’t quite changed with the kindle : you continue to buy your book once in a while over the air. But for newspapers it is quite different. First because advertising is the dominant business model in both industry (news, and internet), and internet is much more relevant because you can count your reader… and you can only estimate your newspapers readers. As said in the article, “the newspaper business can’t transform itself overnight from an advertising-based business to a fee-based business.” But they don’t have to ! and advertisment has simply to be transfer to the service provider… the client is no more the reader… but Amazon ! Which would have to sell some ad space. And we come back to the problem of domination and power struggle – it is quite difficil to accept to “give” your production to another…
