April 12th, 2011
Cheaper Kindle in Works, But It Comes With Ads
The Wall Street Journal
Amazon.com Inc. said it plans to release a cheaper version of its Kindle electronic reader, but there’s one catch: Users will have to view on-screen advertisements.
The Seattle-based company said Monday the new device, called Kindle with Special Offers, will cost $114. That’s $25 less than the cheapest Kindle model currently out. Amazon said General Motor Co.’s Buick brand, Procter & Gamble Co.’s Olay line and Visa Inc. will sponsor the initial ads on the device.
The graphic ads, which are black and white, won’t appear when users are reading an electronic book. Instead, they’ll appear on the Kindle’s home page, where readers choose what they want to read, and on the e-reader’s screen saver, when the device is turned off.
Amazon’s move comes as marketers explore ways to take advantage of the proliferation of electronic books read on devices such as the Kindle, Barnes & Noble Inc.’s Nook and Apple Inc.’s iPad.