Hearst plans its own e-reader: Good idea, sort of…

Joseph Cotten, Orson Welles, and Everett Sloan...
Times have changed since Citizen Kane. How well can Hearst Newspapers adapt? (Image via Wikipedia)

Last week, Hearst Newspapers made two big announcements: That Hearst intends to begin charging for some of its online news, and that it plans to soon launch its own e-reader device to rival Amazon’s Kindle 2.

Gawker cynically decries Hearst’s plan as The Last Stand of a Doomed Industry, but I think this is a step in the right direction — although I would encourage Hearst to think carefully whether it really wants to be in the device business.

We’ve seen how well grasping too tightly to the “paper” part of “newspaper” has worked out from a business perspective. I don’t think getting into the “e-reader” business is a better plan. When news companies get bogged down with manufacturing and owning the delivery vehicles for their content, they lose flexibility and start making backwards-focused business decisions.

It might make more sense for Hearst or other news publishers to partner with the maker of a popular, user-friendly e-reader to create a special-edition product for news. Here’s why…

Continue reading