eBook subsidization has limited potential

I'm quoted today in an MSNBC story regarding electronic books. I recently blogged that the iRex approach of targeting B2B applications was a better market introduction strategy than offering products such as the Sony Reader at retail, but this article raises the possibility of subsidizing the device's through the established subscription model for newspapers and magazines. That has more potential than, say, subsidizing MP3 players through subscription services such as Napster or Audible.

Still, while the electronic ink in this generation may offer a leap forward, it's a poor fit for colorful magazines or even newspapers, the static editions of which compare poorly in timeliness to the constantly updated Web. We'll need more mainstream wireless data usage before we see the dynamically changing stories in electronic newspapers such as those in the movie Minority Report.

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