Unique Original Articles » Amazon Kindle to ship with ads on May 3

Amazon Kindle to ship with ads on May 3

Author: Barbara Coswell

The traditional publishing industry has lost ground to e-readers, tablets and other mobile devices, and Amazon is sitting quite with its Kindle platform. Currently, Amazon has a 60 percent market share in the e-reader market, a hold that should increase as the $114 Kindle with Special Offers hits the market next month. Yet there's a catch - those Special Offers are advertisements, a move that has many worried about the shape of the reading experience to come.

Kindle price cut with advertisements



The first generation Amazon kindle in 2007 cost $399. This is the first time, however, that a price reduction will include the placement of advertisements on the popular e-reader, a move geared to capture ground from the iPad in the e-reader market. The Kindle with Special Offers is slated to ship May 3. The advertisement-supported version can be found in Best Buy and Target for the Kindle 3.

It is "chicken in every pot" decision made with the $114 kindle with Special Offers according to Jeff Bezos, the Amazon CEO and founder:

"We're working hard to make sure that anyone who wants a Kindle can afford one," he said via a statement.


Reader response to a Christian Science Monitor article about the price cut seems to echo the fears most consumers have about an ad-based Kindle. With 99 cent books, one reader would be okay as long as the ad based e-kindle was free. The price of books becomes a different issue then. The $25 discount isn't enough, according to some readers. Most experts' say it is okay though since the advertisements only come up on the bottom of the home screen and on the screen saver.

"It's very important that we didn't interfere with the reading experience," Kindle director Jay Marine told the Associated Press.


Why everybody worries about a price



The guess TechCrunch has is the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. According to traditional marketing, 99 is magical number.

The Columbia Business School in New York did research on this though. It showed this might not be the case anymore. A dollar plus approach, adding a penny, was more effective than the dollar minus approach, taking a penny away. The Columbia study showed this clearly. Dollar plus brands seemed less manipulative to consumers which is why the dollar plus method sold 3 percent more.

Citations



Christian Science Monitor


csmonitor.com/Books/chapter-and-verse/2011/0413/Will-readers-accept-ads-in-exchange-for-a-cheaper-Kindle



Columbia Business School


gsb.columbia.edu/ideasatwork/researchbriefs/7314376?&top.region=main



Knowing and Making


knowingandmaking.com/2011/04/new-research-99-no-longer-optimal-for.html



TechCrunch


techcrunch.com/2011/04/11/amazon-kindle-99/



Kindle sales tripled after last price drop


youtu.be/PaAFm_fZQ2A


Article resource - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
Article Source: JS2 Article Submission Software


Spinit

All articles are submitted by users, we take no responsibility for the content of any articles. Users have given permission for others to use these articles in exchange for credit in the form of a link back to the author's website. For removal requests please contact us at http://www.jetpackedsupport.com