I think they're doing a great thing - allowing avid writers and journalists to have their own newspaper publications. Although archaic in it's choice of presentation, I think it's very forward moving, more so than StumbleUpon and all those other big dogs - it's great knowing there are people that want to preserve the physical aspects of media e.g. newspapers, tape, vinyl, etc.
If everything does become digitized life will become a very predictable and monotonous experience. It's the mad little movements like this that stop that happening...
I believe a large part of the fun in media is the idea of collection - there's something about having many or all the products from a particular company or practitioner (action figures, music 'n' all that) - it just gives you a warm feeling of faith and accomplishment.
I think this avid-follower behaviour is in everybody, and being able to get something that requires physical effort to acquire makes things so much more of a reward - that being the reason why there are still so many big time collectors of obsolete formats.
In comparison to simply logging in to Blogger and checking your RSS feed (which requires zero effort), picking up a newspaper does, and when you get new info from one, it feels just that extra bit more important - after all, you went out with the intent of intel and you got it.
You might jump for joy at the release-date of Avatar on DVD, but it is'nt anyway near as much fun as knowing the date's gonna be released exclusively in "next week's issue" of whichever magazine...
The hype that builds up to these things can sometimes only be created by forms other than the internet. As a newspaper doesnt update itself, you need to wait, and in that time that you're waiting, you get excited with anticipation - chances are, on the internet, if some page has advertised upcoming information, it would have been leaked elsewhere beforehand, dumbing down the hype. ANTI-CLIMAX!
Although Newspaper Club are an interesting and unorthodox amalgamation of online "we-media" and offline physical media, it still works in a way that delivers users that priceless enthusiasm - I get the feeling that printing off your work in big batches and publicising them by hand would acheive you far more success than using the internet (at least with the kids your targeting) - going for a Vice-clone? Leave them in a Shoreditch gig - you'll be swarmed by topmen.

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