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When I read about the proposed 70/30 split, I thought that it was quite generous of Amazon! Let's presume that the cost of printing and delivery is equal to cu

When I read about the proposed 70/30 split, I thought that it was quite generous of Amazon! Let's presume that the cost of printing and delivery is equal to current subscription revenue. Amazon just gave the newspapers a huge increase in profitability (presuming everyone switched to a Kindle tomorrow). My sister-in-law is the business manager for a magazine with 250K subscribers. Their printing/distro costs exceed the average subscription price, so they'd be overjoyed if they could strike such a deal with Amazon and get their subscribers to convert over (unlikely).

sethg 17y ago
But you're not taking into account advertising revenue. I'm not sure a Kindle-based newspaper could attract as much ad revenue as a print newspaper, because the medium just isn't as attractive to advertisers; ads on ebooks or the Web feel much more intrusive to readers than ads in newspapers or magazines.
- ShabbyDoo 17y ago
  I'm not sure either. Does Kindle allow for customized advertising? One problem this magazine has is that 40% of their subscriptions are outside of North America. It's a good thing overall, but they could increase ad revenue by printing two books -- one for NA and the other for "world" (mostly Western Europe in practice) and selling space in just one or the other.