http://techdirt.com/articles/20100614/0149189804.shtml
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Even worse, the price point is hard to swallow. Charging the full cover price for a digital magazine makes no sense when I can subscribe to the paper edition of Wired for a year at a much lower cost per issue -- especially given that there's no paper, ink, shipping or distribution charges. Given the lack of flexibility, I'd assume there would at least be some incentive to get me to make the digital purchase, and even more so in light of the fact that the bulk of the content is already available online at Wired's website for free. It's ironic that Editor-in-chief Chris Anderson famously wrote a book called "Free" -- the Wired iPad app is the perfect case to try out some of those business models.
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Good points. I think we are still at the exploration phase of all this...could a while before these companies find a model that works for both them and for consumers.