Friday, May 15, 2009

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the United States are now 37 papers that provide the possibility to be read through electronic reader Kindle from Amazon. The cost of a monthly average is about $ 10. The price is higher than that imposed by the NYT, $ 13.99 months, lowest is proposed by the San Francisco Chronicle, $ 5.99 month. Based on the reported by the New York Times , 70% of revenue goes into the hands of Amazon, in fact, represents the cost of distribution, which is responsible for the service through wireless connectivity offered by Amazon Whispernet. The cost of the Kindle currently in circulation, six-screen inches is $ 359 while the deluxe model expected this summer, 10-inch screen, will cost $ 489.

Who could make more money by a progressive number of people who might read the newspaper on an ebook are not the newspapers themselves, but Amazon, even though the partnership between newspapers and Amazon is constantly evolving. If the cost of compensation due to Amazon is around 70%, revenue for publishers would be 30%, or by reference to the average price of monthly passes, equivalent to about $ 3 months. Not only that, but the introduction of ebooks may be counterproductive in terms of revenues. Considered that the type of ebook's paper would be to a reader who buys the magazine on newsstands now, the passage all'ebook deprive a significant proportion of revenues. To simplify the relationship would be $ 3 month for $ 30 ebook against months of the paper. A ratio of 1 to 10. While providing a savings resulting from a cost-saving production and distribution of printed newspapers, usually set in a variable percentage between 60-70%, the average reader, and margins sustainable, would not exceed those of paper . If on the other publishers' revenues could reach a level of at least 50% of the subscription, it would be in a position to have a better profitability than is currently achievable from the sale of printed newspapers.

Stephen Peters, on his blog has collected a wealth of information to understand who is currently the user of the Kindle. The result was profile is that of a person with an average age over 50 years which is in fact the average age of the reader of the printed word.

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