Amazon has launched a new Kindle initiative and product, whereby they run full screen screensaver ads and homescreen footer banner ads on e-reader hardware in exchange for a $25 discount. The WiFi-only “Kindle with Special Offers” runs $114, versus the original $139 ad-free Kindle 3. As Harry McCracken points out, the one time savings runs only about 18%; he wonders if this product might more appeal to those interested in the deals themselves rather than the small discount.
Like Harry, I suspect this is a bit of an experiment on Amazon’s part. And why we’re not seeing this Kindle rev launch at the $99, or lower, price point. Can Amazon generate a large enough stable of advertising partners to keep this going, will a sizable percentage of readers take action on the ads, assuming an even more sizable quantity of Kindle purchases.
Business Insider suggests advertising subsidies represent the future of gadgets. However, there’s really nothing new to see here other than being able to choose between an ad-free or ad-supported variant for a discount. Those of us with TiVos, Garmin GPSes, and Xboxes are already quite familiar with the advertising model. Although the individual benefit ($) is harder to quantify. (Heck, I ended up with a free PC about ten years ago when these guys couldn’t sustain their business.)
So, as the headline asks, will you rent Amazon Kindle ad space for $25?