If you’re in the printing business, things might have gone better before. While most content is converging towards digital alternatives, companies that are relying on the production of death-tree media are struggling to justify their existence. But HP, who’s business model relies on the recurring revenue streams of selling overpriced ink cartridges, believes they have found a solution. Internet connected home-printers will soon be able to print a daily selection of news. This full-color document will be accompanied with geo-targeted local ads provided by Yahoo. Yes, companies will be able to push their commercial messages straight into your living room, on your expense of course!
You could say these companies take their bet on a successful variant of a razor-blade model, in which one free service boosts the sales of a secondary product. HP and Yahoo fail at the executional level though. Privacy issues asides, people will not be eager to allow companies to print ads, considering the fact that HP print ink is nearly twice as expensive as human blood. There is a lot to win for the news and content providers, the advertisers and HP; but their is no value for the consumer. This is clearly an old media business model by HP, struggling to get a grip on this ‘new media thing’ they didn’t understand yet.
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