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.