The way I took it as, from the article, would be that things are going to eventually be entirely cloud based, so entirely streamed.
He was wrong about that. It will most likely become a popular option, beside download and rent and download and buy.
The difference is, Magazines and the like are more structured to allow for ads, since they have breaks in the flow. Pop in an ad between articles. You could argue putting them in between chapters, but people would balk at that because it removes them even more from the immersion (which for many people, immersion is more difficult with reading than it is with more visual forms, such as tv, movies, and comics).
Also, people complain when things they're used to having be ad free now has ads. Even if they have ads normally, if people are paying a premium, they expect an ad free environment (look at how many people complain about ads on Hulu Plus).
I think HOW ads are implemented will be key. I've argued that one way would be modelled on the KSO. I suggested this earlier:
I kind of see a way forward here, based on the KSO model
( looks into Crystal ball)
In the future you will have two options for ebooks at Amazon:
The Kindle Edition and the Kindle Edition Special Offers (KESO)
Choose the KE and you get the same , private , ad-free experience you always have gotten, in return for paying full price.
Choose the KESO and you get access to Special Offers. Maybe you get three pages of Special Offers at the start of the book, with a link to the Special Offers home page. Maybe when you open your KESO, you get a prompt asking whether you want to be taken to the Special Offers home page, or continue reading.
The KESO will be offered at a discount. Its hard to figure out what the discount would be for the KESO, but based on the runaway success of the KSO, it's got to be worth more than the $1 Elfwreck is talking about. Let's say $5. For some KESOs, you would get the ebook free. Even if you pay a price, the value of the Special Offers is such that the ebook pays for itself over time or even makes you a profit.
Writers can opt whether they want to offer a KESO or not along side the KE. If they choose to offer a KESO of their work, they get a cut from the advertisers. I expect that independent writers will swarm over this opportunity, with bestselling authors joining later. Later on there are Nook Book Special Offers and Kobobooks Special Offers as the model spreads.
How's that for a vision of the future?
A lot of people on that THREAD
disagreed with me, but I still think that's ONE model that might work