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Gawker’s “Valleywag” section reports on an intriguing development in the world of iPad newspaper applications.

When the iPad launched, one of the first applications to be spotlighted was an early version of the New York Times iPad app. Jobs had a Times executive come up on stage and demonstrate it.

But almost nobody is happy about the final version of the app that the New York Times ended up producing—“NYT Editors’ Choice”, which leaves out much of the paper’s content, including content available free on-line. One of those unhappy people, Gawker says, has been Steve Jobs, “and his displeasure has been made known to senior Times Company executives, according to a source close to the paper.”

The reasons behind the lack of a full-content iPad app are fairly complicated. Part of it has to do with the Times’s agreement with Amazon, which apparently has the same “most favored nation” status Amazon puts in its e-book contracts—the Times can’t release a cheaper version for another tablet.

Also, there is disagreement between the paper’s departments as to whether an iPad version should be expensive (so as not to “cannibalize” print sales) or cheap (so more people would buy it).

It’s a pity that one of the most anticipated apps for the iPad turned out so poorly, but it does serve to illustrate how complicated digital publication of newspapers can be.

 
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