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Part of the problem iRex is having with newspapers is that they just want to sell them the devices and have the papers assume the cost of advertising and otherwise finding users.
It doesn't benefit the paper that much to move a given reader from paper to electronic, they need to add new customers, or move very large chunks of their existing customer base to electronic in order to see any benefit at all -- their printing and distribution costs just aren't that much on a per reader basis.
Add into that mix an $800 device plus all the costs & trouble of getting anyone to use it ....
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