Since the advent of electronic paper, analysts have written about the potential of this technology to save local newspapers. Amazon’s introduction of the Kindle added to these discussions. However, it is worth taking a closer look.

Back in May, Engadget reported that “Amazon takes 70 percent of Kindle newspaper revenues”. Yet still, you can find the larger papers, like the New York Times, Washington Post, and Boston Globe on Kindle. The question is, even with the excessive cut that Amazon takes, can it be a viable platform for smaller local papers. A quick search for Connecticut papers did not turn up any.

Yet Amazon has introduced a new product that has potential to bring smaller news sites online. Kindle Publishing for Blogs is currently available in beta. Just about any blogger can go to the website and get their blog listed. Amazon will charge 99 cents for a monthly subscription to the blog and like with newspapers, keep 70%. I know quite a few bloggers that have set their blog up on Kindle this way, but know of none that have received any revenues yet.

I discussed this with a group of journalists focusing on emerging trends in journalism. The group is made up of professors, journalists at online sites as well as journalists working for traditional organizations. None had used Kindle publishing. One editor who runs a very successful online news site published in blog format expressed a concern about using Kindle Publisher for Blogs. She did not want her site “to be sequestered off in ‘blogland’”. She asked if there was some way to get the folks at Amazon to consider sites like hers for the Kindle.

I sent a request to Kindle Blog Publishing Team, which was one of the few addresses I could find for people working with the Kindle at Amazon asking about this. The response I received was that there was “a different team who work for news content on Kindle”. This was no surprise, and I had hoped that I would be given the contact information for that team, or had my request forwarded to that team.

Instead, they asked for a specific query from the editor which they would then forward to the news content team. I sent a follow-up asking if they could send me the contact information since I am dealing with several online news sites. They responded that they are not able to share contact information for the news team. I sent yet another follow-up urging them to reconsider their request and perhaps forward my response onward. I have not yet heard back from them.

Today, the Examiner has an article stating Ereader sales set to explode, but the Kindle may not reign supreme. It notes research by iSuppli claiming that currently Kindle has 45% market share and Sony has 30% of the market.

As the market grows people will look closely at what is available for their ereaders. Amazon, as an online bookstore, is well positioned to provide content. However, their approach towards news organizations may drive more and more content providers to other platforms, which in turn will drive ereader buyers to other platforms.

Ereaders may yet provide a viable platform for local news organizations, however, unless Amazon changes its tune, those ereaders are likely to be provided by someone else.

(Originally published at Digiday:Daily.)