Media Roundup: Amazon Launches New Kindle, Leading Magazine Wholesaler Goes Under, and More.

Amazon launches new Kindle — Later today, Amazon is expected to announce the newest version of its Kindle e-reader. The e-reader, which uses a technology known as e-ink to make books easily readable on a digital screen, has been sold out for months. However, customers on the waiting list will receive the new edition. As part of the launch, Stephen King has written an e-book to be released exclusively on the device. [Source: TechCrunch]

Leading magazine wholesaler goes under — In wake of a disagreement with magazine publishers, wholesaler Anderson has been forced to suspend business operations. Time Inc., Bauer Publishing and American Media Inc.  have all pulled magazines off of newsstands over a proposed seven cent per issue rate hike. The disagreement has lead to a drop in sales as publishers find new distribution deals. Anderson is currently in talks with publishers and retailers to find a way to stay solvent. [Source: MediaWeek]

AP gives employees two percent raise — The News Media Guild and the Associated Press have reached an agreement over employee wages. The new two-year contract gives employees a two percent raise while defining specific protocols for future layoffs and wage freezes. Last year, AP CEO Tom Curley told employees that the company would have to cut 10 percent of its workforce in 2009.  [Source: Editor & Publisher]

Wall Street Journal launches Indian edition — In addition to redesigning its Europe and Asia versions to be more in line with the American product, The Wall Street Journal has launched an online India edition. The company is currently trying to create a print version, but Indian media regulations are holding up the new product. Indian media rules limit foreign investment in local media to 29 percent, the Wall Street Journal refuses to launch unless the limit is raised to 49 percent. [Source: contentSutra]

Newsweek to tone done coverage — Newsweek is beginning to significantly change its brand by creating a smaller issue with a more opinionated take on select events. The redesign is an effort to target wealthier, more affluent, readers. Newsweek has downsized its subscription base and trimmed back the news that it will cover. Because of increased breaking news competition from the Web and cable news, Newsweek is planning to focus more on analysis. [Source: New York Times]

Sports Illustrated swimsuit issue five times more profitable than normal issue — The annual Sports Illustrated swimsuit edition is responsible for 11 percent of the magazines revenue. The issue will not be available as widely as years past because of a conflict with magazine wholesalers. [Source: Silicon Alley Insider]

Honolulu daily switches to tabloid — The Honolulu Star-Bulletin has announced it will cut 17 newsroom positions and switch to a tabloid format. Parent company Oahu Publications also announced layoffs and wage freezes. The paper will close several of its bureaus and rely more on wire services. [Source: Editor & Publisher]