That’s what Sony says it is trying to do with News Corp. and some of its publications. The partnership the two companies announced today won’t be nearly enough to make Sony’s Reader line competitive. But it does point in the direction both companies would like to head.

Dow Jones (which owns this Web site) will sell a version of its flagship Wall Street Journal for the Reader devices, as well as a “Wall Street Journal Plus” package that includes a second mini-edition of the paper to be published at the end of the day. Also on offer: A Reader-tailored version of the Marketwatch finance site and a subscription to the New York Post.

Sony (SNE) will have the only e-reader that sells the Post and the second edition of the WSJ. But that’s about it as far as exclusivity goes. The regular Reader version of the Journal looks to be the same one Amazon (AMZN) is already selling at the same price: $15 a month for the basic edition.

And even if you’re one of the people who loves to read a print paper on a handheld device, most of these offers don’t make a lot of sense for an e-reader.

The Post is a tabloid that’s pretty much designed to be consumed, then tossed away, in the course of a subway ride–and if you want to get it for free on the Web, you can do that too.

You can also consume all of Marketwatch for free on the Web, where it makes much more sense to do so, since that the site provides constant updates on…the market.

And given the Journal’s increasing emphasis on speed and breaking news, you’d think its paying subscribers would want the freshest copy possible. But the Sony Reader version is completely static.

So this is pretty much a symbolic deal, right? More or less, Sony CEO Howard Stringer told a press conference this morning. The big picture, he says, is that devices like the Reader are both a growth business for Sony and an opportunity for content owners to charge for stuff that has been free on the Web.

“The sense of losing control of our content is on all of our minds,” says Stringer, whose company is famously both a hardware manufacturer and an entertainment provider. “We’re trying to preserve the value of content in both movies and music and newspapers.”

That dovetails with News Corp.’s (NWS) big-picture plans, which CEO Rupert Murdoch has been has been hollering out at every opportunity: Pay up.

But there’s also a more practical side to the deal for News Corp., which wants to distribute its stuff on as many platforms as possible–and extract better terms than it gets from Amazon and its Kindle platform.

In November, Murdoch said his company was getting up to $6.50 for each $15 Journal subscription it sold via Amazon (AMZN), but noted that this isn’t enough. News Corp. and other publishers have also carped that Amazon keeps valuable customer data for itself.

The Sony deal offers better terms, said Wall Street Journal Managing Editor Robert Thomson, without getting into specifics: “I think you can assume that we’re getting a better deal and that our concerns about customer information have been addressed.”

Skiff would give publishers an alternative to Amazon.com Inc.’s (AMZN) Kindle store, which currently dominates the burgeoning field of digital reading. Through Skiff, Hearst said consumers will be able to buy digital publications that have better graphics and look more like their print counterparts, including the inclusion of advertising, than versions offered elsewhere.

The service will include a digital storefront as well as a back-end system that publishers can use to render their publications for a range of electronic devices, including Apple Inc.’s (AAPL) iPhone and small laptops called netbooks. Skiff, which Hearst has been developing for more than two years as a separate company called First Paper LLC, also is developing its own e-reading device with a consumer-electronics firm.

Read the rest of this post on the original site

But Condé, like other publishers, says Apple (AAPL) won’t actually talk to the company about its plans for the device, or even acknowledge that it has plans.*

Condé’s plan, meanwhile, is to create digital versions of its magazines that will work on all the upcoming tablets, using new software from Adobe (ADBE). Those tablets aren’t actually on the market yet, but the publisher says it’s confident that we’ll soon see multiple versions of machines featuring large color touchscreens and wireless connections.

So who’s going to make those gadgets? Condé Nast CEO Chuck Townsend says his company is working closely with Hewlett-Packard (HPQ) and that it has also been communicating its plans to Apple. But Townsend made a point of saying that Apple executives themselves refuse to acknowledge that they’re actually planning a tablet: “They’re not talking to anybody openly,” he says.

Adobe is creating a publishing tool for the new format, as well as magazine-reader software that may come pre-installed on the devices or may require a download. The software company says it is working exclusively with Condé now, but will offer its tools to other publishers next year.

[Important technical point several readers have brought up: Adobe says its new reader software will run using its AIR platform, which works on multiple operating systems, including Apple's desktop system. But neither AIR nor Adobe's flash software works on Apple's iPhone, so if the new mystery device runs on that operating system, there's a problem. I'm following up with Adobe to see what it has to say. UPDATE: Here's Adobe's response.]

Condé says its work with Adobe won’t preclude the company from joining the “Hulu for magazines” storefront/distribution joint venture it has been discussing with Time Warner’s (TWX) Time Inc. and other publishers. “Those discussions are ongoing and important and imminent,” Townsend says.

Okay. So what will Condé’s magazines look like once the tablets appear? The publisher has been showing a demo video to advertisers, industry executives and employees, and I’m trying to convince the company to show it to the rest of the world. (UPDATE: Here’s a partial, low-quality version of the video).

But until then, you can get a sense of it by checking out the publisher’s first attempt to port a magazine to the iPhone, which was released today at the iTunes App Store.

Like the iPhone version of GQ’s December issue, Condé says its tablet magazines will feature the same content found in the print versions, including original advertising, with the ability to view pages in their original form or in formats designed specifically for the device. They will also import multimedia content, like videos, and offer the ability to synch up with social networks and other Web sites.

Condé also thinks the business model for its tablet mags will mirror that of its iPhone app. The company intends to charge readers for each title, and it plans to convince the Audit Bureau of Circulations, the magazine industry’s standards board, that its online sales are equivalent to newsstand sales. That will allow Condé to charge advertisers the same rate as for print ads.

If all of this works, it’s a dream scenario for Condé and other publishers. The magazine industry gets to keep the revenue streams its print publications generate without having to make the “analog dollars for digital pennies” discount that the Web requires. Meanwhile, Condé gets to bask in the benefits of digital–lower distribution costs, more engagement with readers.

Or put another way: Publishers hope the new devices will repair all the value destruction the Web has wrought.

But all of this assumes that consumers, who’ve shown no inclination to pay for this stuff on the Web, will be willing to pay for it once it appears on devices no one owns yet. We’ll find out soon enough.

*One possible exception is the New York Times (NYT), where editor Bill Keller refuses to talk about possible talks with Steve Jobs and company.

The publisher plans to start selling digital copies of its print titles via a yet-to-be-approved app. Condé will start with the December issue of GQ, which it will sell for $2.99 (versus a newsstand price of $4.99), but the idea is that the publisher can use the same technology to sell other issues of other magazines down the road.

Condé says the GQ digital issue will replicate the print one on a page-by-page basis, including the ads. Digital bonuses include related videos, as well as links to sites for products (clothing, music, etc.) featured in the issue.

I wasn’t able to attend Condé’s presentation this morning, so I can’t tell you how its attempt to transfer a rich glossy magazine onto a phone (or iPod touch) actually works. But for now, I’ll take the company’s word for it and assume that it’s a nice alternative to carrying around some dead trees.

The interesting question is the business model, which I think has some real potential. This doesn’t solve Condé’s core problem–its costs are too high to support its shrinking ad revenue–but it does have several things going for it.

For one, this approach reaches its potential readers where they are: I don’t want to read a magazine at my desk, and I’m far from sold on the idea of buying a specialized reader to consume it digitally. Getting it to me on my phone, which goes wherever I do, is the way to go.

It also generates some (potential) additional revenue for Condé Nast right off the bat without creating a channel conflict with its analog product line: Condé will be able to count any magazines sold via its app platform toward its audited circulation numbers, a trick that no publisher has been able to pull off with Web products so far. Meanwhile advertisers in the print publication who want to add digital links to the iPhone version will pay a premium, Condé says. And the publisher has been able to extract additional dollars from Grey Goose and Gillette, which will be “premium sponsors” of the GQ issue.

Bonus upside: Condé says the technology it has assembled for this effort should work well for future Apple (AAPL) products, like, say, its mythical tablet. “We think that the minute Apple is ready, if they ever are, to announce that they’re going forward with a tablet, that we’ll be ahead of everybody,” says Sarah Chubb, president of Condé Nast Digital.

This doesn’t solve the distribution issue that Condé and other publishers have with Apple, Amazon (AMZN) and other potential digital delivery outfits: Apple, not Condé, will control the billing relationship for the app. But then again, Condé doesn’t get to interact with you when you buy a magazine at a newsstand either, so at least it’s not getting disintermediated.

The question, as always, is whether customers are willing to pay anything at all for content they’ve been getting free on the Web. I still think we’re going to end up with a small segment of people willing to pay up for specialized stuff and a very large group that are going to end up with free things of dubious value. It would be great to be proved wrong, though.

It’s not a huge shock to see some of those titles go: Cookie, for instance, wasn’t a prestige title for Condé–like Domino, which the publisher closed down earlier this year, it was founded in 2005.

But Gourmet is one of Condé Nast’s most famous titles, and editor Ruth Reichl is one of Condé’s best-known editors. Most observers would have figured that Bon Appétit would go instead. CEO Chuck Townsend says the Gourmet brand will live on, zombie-style, via TV and publishing deals.

Condé has long cultivated a reputation as the magazine world’s most glamorous outpost, impervious to the petty concerns that bedeviled lesser folk. But the double-punch of the ad industry’s move away from print titles and a recession that pole-axed the luxury brands Condé depends on, has staggered the publisher. (Disclosure: I do some free-lance work for Condé title Vanity Fair).

Signs of trouble showed up late last year when the publisher made uncharacteristic staffing cuts. And in 2009, it began shuttering magazines: In addition to Domino, it closed Portfolio in April, just two years after a high-profile launch.

By July, Townsend had brought on consultants from McKinsey and Company to help figure out where else it could trim; the news that September ad pages would be down anywhere from 17 percent to 47 percent made it clear that other titles would be going.

I wouldn’t expect this to be the last big set of magazine cuts, by the way: Time Warner (TWX), for instance, has made it clear that it wants to hang on to Time Inc. but that it thinks the publisher employs too many people who produce too many titles.

Here are the details on the Condé cuts, via an internal memo (intended for public consumption) from Chuck Townsend:

From: “Townsend, Chuck”
Date: Mon, 5 Oct 2009 10:16:52 -0400
To: Conde Nast Publications-All <_273fee@condenast.com>
Conversation: Announcing Changes within Condé Nast
Subject: Announcing Changes within Condé Nast

We have now completed an extensive review of our business–an important undertaking given the dramatic changes in the U.S. economy. The review has led us to a number of decisions designed to navigate the company through the economic downturn and to position us to take advantage of coming opportunities.

Condé Nast’s success comes from the ability of our publications to attract readers with a wide range of interests, as well as advertisers who value them. But in this economic climate it is important to narrow our focus to titles with the greatest prospects for long-term growth.

As a result of our review, Brides will increase its frequency to monthly to solidify its position as the most important brand in the bridal category, and Modern Bride and Elegant Bride will close.

Gourmet magazine will cease monthly publication, but we will remain committed to the brand, retaining Gourmet’s book publishing and television programming, and Gourmet recipes on Epicurious.com. We will concentrate our publishing activities in the epicurean category on Bon Appétit.

Finally, Cookie magazine will be discontinued, and resources that had been dedicated to its publishing will be invested elsewhere.

The editorial and business staffs of Modern Bride, Elegant Bride, Gourmet, and Cookie all have earned their magazines large and devoted followings. We have been proud to publish these titles, and we are grateful to the staffs for their hard work and dedication.

These changes, combined with cost and workforce reductions now underway throughout the company, will speed the recovery of our current businesses and enable us to pursue new ventures. In the coming weeks, we hope to announce initiatives to develop digital versions of our brands that will make use of new devices and distribution channels.

Condé Nast is now in its 100th year of creating the most respected and iconic brands in the publishing world. These changes will ensure that our unique publishing company will continue in its preeminent position for many years to come.

Spanfeller’s departure comes amid a flurry of bad news for finance publications. In April, Condé Nast pulled the plug on Portfolio, its business magazine and Web site, after a very expensive two-year run. Earlier this week, publisher McGraw-Hill (MHP) announced that it was shopping BusinessWeek, and observers are floating the notion that the company may end up giving the magazine away to anyone who wants to take on its annual losses.

Time Warner’s (TWX) Fortune magazine has also been battered by the recession, which has been particularly hard on the finance, auto and luxury-good companies that business publications have traditionally relied upon. And Forbes itself has gone through multiple rounds of layoffs since last fall.

In a memo to the company’s employees, Forbes CEO Steve Forbes praised Spanfeller for building out the company’s Web property, which says it receives 18 million unique visitors a month.In the aftermath of the dot.com crash, Spanfeller helped turn Forbes.com, which the family-owned company was close to shutting down, into a powerhouse.

But Forbes’s plan to take the Web property public earlier in the decade never panned out. And once Forbes sold a 40 percent stake to private equity investors Elevation Partners three years ago, plenty of Forbes employees, including me, had speculated that Spanfeller would look for a job that promised a big payout. That said, it wasn’t that long ago that Spanfeller was the victor in a power struggle with Jim Berrien, the former publisher of the Forbes print edition.

The news was first reported by AOL’s Daily Finance. Here’s the company memo from CEO Steve Forbes:

To: All Hands

From Steve Forbes

July 16, 2009

Jim Spanfeller, President and CEO of Forbes.com has decided to step down from leading our website after nine years. In the entrepreneurial spirit that Forbes has always championed, Jim will be setting up his own media management company.

Describing his future plans Jim said, “The world of media has changed rapidly in the past 10 years and the velocity of the change promises only to increase going forward. I’ve had a great run at Forbes and have been deeply involved in the breakthroughs and transformations between traditional and digital media.  Now I see a huge opportunity to have my own media management business that will help other traditional media companies make the most of their enormous prospects in digital venues, taking all I have learned here in the past decade and applying on a wider horizon. Forbes.com has truly been a truly wonderful ride and I am deeply in debt to the Forbes family for letting me be a part of it.”

Jim has done a monumental job of bringing Forbes.com to the lead position in business websites, and secured Forbes.com as the must visit site for not only global business leaders but also anyone interested in the finest business reporting and analysis available. At present Forbes.com has 18 million unique visitors a month.

Along the way, Jim has overseen the development and growth of Forbes Digital, which includes Forbes.com, ForbesTraveler.com, Investopedia.com, RealClearPolitics.com, RealClearMarkets.com, Real Clear Sports, and Forbes Business and Finance Blog Network, which together reach 40 million unique visitors a month.

This immense growth on the digital side of the business was spearheaded, pursed, and led by Jim with enormous success. The digital world is still uncharted with few rules, and Jim’s intellect, creativity, and business acumen helped bring us our number one position. For this the Forbes family is very grateful and we wish him all the success in his future plans.

Since Elevation Partners partnered with Forbes three years ago, Jim has worked very closely with them on the growth and development and vision for Forbes.com.  Commenting on Jim’s departure, Roger McNamee of Elevation said, “Jim did a fantastic job leading Forbes.com. In an era when competitors feared it, Jim embraced and evangelized the internet, with huge benefits to Forbes and its audiences. We are grateful for his contributions over the past nine years.”

Jim will be staying through a transition period at least through Labor Day. Please join me and my brothers in wishing Jim all the best in the future, which he deserves.