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Digital interface nullify production costs and can be a profit platform through advertisements by companies and products that cater to kids... through these revenues a subsequent paper version can be brought out for circulation.

different pages for different age groups is again a great idea... the pages can be designed catering to each group.. with bigger fonts and simpler content for 5-8 yrs. can deal with some issues related to schooling which the kids face in a simple story like manner... stories to encourage curiosity and exploration at an early age but simple in content... 8-12 yrs can have slightly more complex content which is challenging and more explorative. Also deal with certain pre teen issues and so on...

a children's news paper is a great idea... the sponsoring can be by schools or even bigger news papers... they can take out a childrens addition/ sponsor one... it will ensure publicity of the parent paper and ensure a future customer base! ...thats looking at it from the marketing point of view...

The question is; should it be paper-based or digital. Or both. You could have a digital version with turning pages, too for example. This is fundamental to understand how children come to access the paer. Also, will it carry advertising as there may be ethical issues about the motive of exposure to such. For example, if it was 'free', who would foot the production costs.

The news need not be a fresh one. One can publish upto one week old news. This will ensure enough material. The "paper" can be published twice/once a week.

The news paper should have diferent pages for different age group e.g 5-8 years, 8-12 years etc