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New Kindle Has Lower Price and Ads

Written by George Anderson

Amazon has come up with a way to make its Kindle e-reader more affordable -- advertising. The company's new Kindle with Special Offers is priced at $114, $25 less than its base model.

In a letter to consumers on Amazon's website, CEO Jeff Bezos wrote, "We took our bestselling Kindle and made a version with special offers and sponsored screensavers. Companies sponsor the screensavers, you pay less for the Kindle. Plus you receive offers directly on your Kindle that can save you more money, such as a $20 Amazon Gift Card for $10, 6 Audible Books for $6, and an album from Amazon MP3 Store for $1."

Offers presented to consumers either appear on a screensaver or at the bottom of page to not interfere with reading.

Companies sponsoring the first group of screensavers includes Buick, Chase (Amazon Visa), Buick, Procter & Gamble (Olay) and Visa.

"The opportunity to offer custom-designed Kindle screensavers was a natural fit for Buick because Kindle is such a unique device surrounded by a community of intelligent, passionate people," said Craig Bierley, director of advertising and promotions, Buick, in a press release. "Kindle's high contrast e-ink display eliminates glare and is perfect for emotionally engaging and impactful brand imagery, allowing us to connect with Kindle readers wherever and whenever."

"This is about making sure anyone who wants a Kindle can afford one," Jay Marine, director of Kindle products, told Bloomberg News. "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."

People won't hesitate to buy the cheaper device because advertising is everywhere we look," Richard Curtis, a literary agent and digital book publisher, told The Wall Street Journal. "People will think it's a good trade-off."

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