Sony Signs a Deal With News Corp As The E-reader War Intensifies

Justin Kerr

In an increasingly overcrowded e-reader market, content will likely decide the ultimate winner. It worked for Apple, and Sony is hoping they are on track as well by signing new deals with News Corp to add content from the Wall Street Journal, MarketWatch, and the New York Post to its e-ink devices.

According to Reuters, Sony will offer monthly subscriptions to the Wall Street Journal for $14.99, MarketWatch for $10.99, and the New York Post for $9.99. It seems as though Sony believes the e-ink editions formatted for their devices can command a slight premium since the Wall Street Journal online can be viewed from any web browser for less than $8 a month at today’s prices. This represents a pretty significant price delta, but it likely has something to do with the additional formatting that needs to go into reorganizing the content for a smaller screen.

Exact sales numbers for e-ink devices are hard to hammer down, but analysts currently forecast the Kindle alone will bring home about $301.4 million in revenue for Amazon in 2009, and this number is expect to grow as high as $1.8 billion by 2012. Only time will tell if the Kindle will remain the dominant platform, but clearly its still anyone game at this point.

Which e-reader do you think has the potential to become the next iPod? Or will the market fragment the way PC’s did?

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