Paperless Papers

A good article from the Ft5/9: I thought Kindle was to replace the book, but that kind of stalled, so now it's going to save the newspaper? Nevertheless, something is struggling to be born and it will be paperless.
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(Copyright Financial Times Ltd. 2009. All rights reserved.)

Newspaper executives increasingly believe gadgets such as the Kindle, Amazon's sleek e-book reader, might fix their industry's malfunctioning business model. This week, The New York Times, Boston Globe and Washington Post announced plans to subsidise the cost of new Kindles to win electronic subscribers in certain markets. Even Rupert Murdoch, chief executive of News Corp, is making noises about handheld gadgets. If enough people bought them, the NYT, for example, could theoretically save up to 35 per cent of its flagship paper's operating costs if it sold only paperless subscriptions.

One problem is how to reach the point whereby electronic subscriptions make up for lost newspaper sales. Subsidising hardware - the latest Kindle costs almost $500 - might help; mobile phones only became ubiquitous after mobile operators handed out free handsets in return for multi-year contracts. But there are problems applying this to newspapers.

First, subsidies require an element of cash upfront - something many newspapers lack. Second, Kindle revenues may be measly. The NYT wants Kindle subscribers to pay about $170 a year to read news on its 10-inch screen. Yet one publisher reckons 70 per cent of that will go to Amazon, leaving $50 for the paper itself - enough to cover a small hardware subsidy but little else. Mobile phone operators make their margin by charging for extras such as data plans and roaming services. It is harder to see what premium services a newspaper could offer. Counting on advertising is difficult as no Kindle ad market yet exists.

A paperless future, therefore, remains some way off. But investors can draw one conclusion from the recent hubbub. Asking readers to pay for an e-book edition of The New York Times makes little sense if they can access the same content from a computer for free. If newspapers are serious about e-books, they will all have to start charging for online content as well.

Moldavan protest and internet

Two articles from the BBC website show the political power of the new communication modes out there. The first is dated 4/8 and the second 4/26. Who's gonna be the McLuhan of the Twitter era?
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Riot police in the Moldovan capital, Chisinau, have regained control of the parliament building that had earlier been stormed by protesters.
This followed the re-election of the Communist Party in Sunday's elections.
Thousands of anti-communist demonstrators stormed parliament, smashing furniture, throwing computers through windows and lighting fires.
More protests, which President Vladimir Voronin said amounted to an attempted coup, are expected on Wednesday.
In a televised address on Tuesday, he said he would protect Moldova from what he called a handful of fascists drunk on anger.
State TV quoted police as saying one woman had died from carbon monoxide poisoning during the protests. BBC 4/8
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It all started in a Chisinau cafe, when Ms Morar and a handful of friends decided to hold a peaceful protest against the Communist victory in what they thought was a rigged election.
"It just happened through Twitter, the blogosphere, the internet, SMS, websites and all this stuff. We just met, we brainstormed for 15 minutes, and decided to make a flash mob [internet-organised spontaneous public gathering]...
"In several hours, 15,000 people came out into the street."
BBC 4/26