The Kindle/Google/distribution problem

An interesting quote from Jonathan Miller (once-upon-a-time my boss’ boss’ boss’ boss at AOL) talking about Kindle, the and the distribution problem in digital media:

I went from paying $14 to The Wall Street Journal to paying $10 to Amazon (for on the Kindle). Now the splits there, and I think this is relatively well known, are very, very much in favor of Amazon. So I became very much less valuable to The Wall Street Journal. That’s part one. Part two is they don’t know I exist. I went from being someone who’s their subscriber to being someone who is an Amazon subscriber, which The Wall Street Journal has no visibility back to and cannot manage that customer relationship. . . . So they’ve lost both the customer management and, trust me, the lion’s share of the economics.

So newspapers are mad at Google for creating an efficient distribution system that drives traffic back to them, but the same publishers are rushing to Amazon to give them 70% of the subscription revenue to get onto Kindle?