The San Francisco Public Press, an online news source, launched its pilot print edition on June 22nd, 2010, with 8,000 copies. The Public Press is distributed at locations around San Francisco at a price of $2 per copy. The Public Press has been an online news source since March 2009.
The Public Press hopes to eventually to "publish a nonprofit, ad-free daily newspaper — online and in print — that contributes to a competitive news environment for intelligent and in-depth journalism", per their blog.
It will be interesting to see if the advertising free model can work in print and online, and if/when their model does change, how does it alter.
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