AMAZON HAS unveiled a version of its Kindle electronic-book reader that requires customers to view ads in exchange for getting the lower price. The new device, called Kindle With Special Offers, costs $114, $25 less than the lowest-priced model.
It will be available on May 3rd in the US, but Amazon did not say when it would be available in the Republic and other markets.
Amazon chief executive Jeff Bezos is counting on the Kindle, unveiled in 2007 for $399, to capitalise on digital-book demand. With the new approach, he gains a bigger price advantage over rivals and opens an additional source of ad revenue.
The device has become Amazon’s most popular product and will bring in $5.42 billion in revenue this year, according to one analyst. A version without ads will continue to sell for $139.
“This is about making sure anyone who wants a Kindle can afford one,” said Jay Marine, director of Kindle products. “Every time we’ve been able to make Kindle more affordable, we’ve seen huge growth in demand. We expect the same to happen here.”
In addition to ads from such big brands as Buick, Procter Gamble’s Olay skin products and Visa, Amazon also will put its own promotions on the device, such as offering readers a $10 gift card for $20 worth of merchandise on its website.
Over time, Amazon will phase out its own advertisements on the Kindle and replace them with promotions from other companies, Mr Marine said.
The company worked with advertisers to ensure the ads do not get in the way of reading, he said. Ads will appear as a screen saver when the Kindle is idle. They will also be seen as a banner on the bottom of the screen on a user’s home page. – (Bloomberg)
