I'm not sure that that is the case ...
given the iDS service, I would have thought that they really want newspapers to format for their device, they skim a %age off of any subscription - if popular - this would be a much better model than just selling the devices, more akin to the mobile phone model than just shifting kit.
I agree about leaving the onous on the newspapers to acquire customers ... but the newspaper wouldn't just be moving customers from p to e more importantly for newspapers would be moving casual buyers (from newstands for instance) into subscribers during the process of a shift from p to e - this would be a huge benefit assuming the shift happens and customers like the format.
Still newspapers and magazines are a tired format the medium doesn't make them any more interesting - blogs and forums etc take a lot of mindshare and viewing time/ad spend - there is overfocus on newspapers for my taste.
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