waderoush writes "In March 2011, personalized-magazine startup Zite got a cease-and-desist letter from a group of 11 media giants outraged by the way Zite's popular iPad app 'misappropriated' their news articles. By August 2011, Zite had become part of CNN, which is owned by Time Warner, one of the organizations behind the C&D letter. Zite's brief clash with the media establishment, followed by its swift assimilation into the same establishment, is emblematic of a larger story unfolding in the media business: the grudging acknowledgement by publishers that readers want to access their content in new ways. In this article Zite CEO Mark Johnson explains how the startup mollified publishers (by presenting articles in 'Web view' mode rather than a stripped-down 'reader mode'), why CNN bought the company, and how it strives to make reading more enjoyable while still respecting publishers' business models."
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