According to industry insiders, Hearst, which publishes magazines ranging from Cosmopolitan to Esquire and newspapers including the financially imperiled San Francisco Chronicle, has developed a wireless e-reader with a large-format screen suited to the reading and advertising requirements of newspapers and magazines. The device is likely to debut this year.

"I can't tell you the details of what we are doing, but I can say we are keenly interested in this, and expect these devices will be a big part of our future," Hearst's Kenneth Bronfin said.

Specifications are still in the realm of rumor, but Money suggests a larger device (roughly the size of a sheet of paper) to better emulate the periodical reading experience, as well as to support advertisers. Sound cumbersome? Well the device might be flexible, or even foldable. Slick. As with the Kindle and Sony Reader, the device would use E Ink's electronic ink technology, with the initial release probably being black and white, with color and even video supporting devices to follow later.

The first model will likely debut in black-and-white due to technology limitations, but may transition to color as current prototype displays enter production. Publications are expected to download wirelessly, and the reader may also use a flexible or foldable body, making it more practical for users riding in mass transit systems. Prices and branding will be dependent on publishers, one of the industry sources suggests.

We have to admit the fact that Kindle isn't best-suited for magazines, and that all magazine publishers will eventually have to figure out a way to shift their businesses to digital.