Amazon Agitates for Digital Revolution

Updated from 3:47 p.m. EDT

Amazon (AMZN) is looking to lure newspaper readers and students onto its electronic book technology with the Kindle DX, a device it launched Wednesday.

The online retailer took the wraps off its latest e-book offering in front of a crowd of journalists at New York's Pace University and is now eyeing a digital media revolution.

Capable of downloading books and other content via 3G wireless networks, the Kindle technology is touted as an alternative to traditional books, newspapers and magazines. The previous version of Kindle, however, offered a 6-inch screen, which was not well suited to viewing newspapers and textbooks.

"The fact of the matter is that, even with electronic paper, you need a big display," admitted Jeff Bezos, the Amazon CEO, explaining that the Kindle DX's screen is just under 10 inches.

Other new features of the Kindle DX include a built-in PDF reader, a keyboard for creating annotations, and an expanded capacity capable of storing 3,500 books. The reader also comes with "auto-rotation," enabling readers to view content in either portrait or landscape mode, simply by flipping the device.

In addition to the Kindle DX, Amazon also announced a slew of partnerships Wednesday, which hinted that e-book readers could be here to stay. A handful of big-name newspapers, including The New York Times and The Washington Post, will offer the Kindle DX at a reduced price to readers who live in areas where home delivery is not possible and who sign up for a long-term subscription.

This move could be significant. With ad revenues falling, newspapers are desperate to cut their production costs and open up new online revenue streams.