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Rather than close shop altogether, they might be tempted to try a new business model with the iTunes store and a new tablet device/iPhone/iPod Touch for distribution.
The tablet will be so much more than a magazine and newspaper reader, I'm sure. But if Apple does with the tablet what it did with the iPod, and somehow makes it worth paying for all this content instead of getting it for free on web sites, then we really could see the death of dead tree publishing in a few years. At least for periodicals. Books will live longer in physical form, but I can't see magazines and newspapers holding out much longer.
The only question remaining is how will Apple structure this deal? Will they offer free subscriptions with ads, and pro paid versions without? Will larger print establishments still be forced to downsize to a much smaller operation?
I have no doubt many magazines will still close shop or consolidate. And many of the great journalists out there will simply go rogue and start their own blogs, which they could easily live off of, since they won't have to pay for all the overhead of a major newspaper or magazine.
Either way, I don't think there will suddenly be a shortage of great writing out there. But you will see fewer and fewer newspapers and magazines in dentists' offices and public transportation.
And this has nothing to do with the content quality. There's obviously great and important writing going on in mainstream newspapers and magazines. It's the distribution that's a problem.
I have no idea how Apple will approach a print publishing model with iTunes / iPhone Apps on a tablet. Maybe there are some clues in how they do television show subscriptions?
I love apple...