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Advertisement supported Kindle to ship at $114

Author: Barbara Coswell

The traditional writing industry has lost ground to e-readers, tablets and other mobile devices, and Amazon is sitting quite with its Kindle platform. Once the $114 Kindle with Special Offers ships May 3, Amazon should improve its 60 percent share in the e-reader market. 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.

Putting advertisements on a kindle; pay less



About $399 was spent in 2007 on the first Amazon kindle. The price has gone down a lot since then. This is the first time, however, that a price reduction will include the placement of ads on the popular e-reader, a move geared to capture ground from the iPad in the e-reader market. There could be Special Offers in the May 3 edition of the Kindle. It is a product several will want. The Kindle 3 can be put in stores then. Both Best Buy and Target will carry it.

Amazon founder and CEO Jeff Bezos sees the $114 Kindle with Special Offers as a "chicken in every pot" move:

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


There were many responders to an article by the Christian Science Monitor that many may have about the kindle with ads. The price of books was brought up by one reader that claims kindles for free with ads would be okay with $0.99 books. Many experts say it is good that Amazon only has ads on the bottom of the home screen and on Kindle's screensaver, although some complain a $25 discount is not enough.

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


The price is needed



TechCrunch predicts the $114 Amazon Kindle with Special Features is an intermediary step toward a $99 Kindle for Christmas 2011. 99 is a magical number. Most marketing would suggest this.

This is not real anymore though according to research done at the New York Columbia Business School. The Columbia study showed that the "dollar-minus" approach bringing it down to 99 cents was not nearly as effective as bring it up a penny for a "dollar-plus" approach. Dollar plus brands seemed less manipulative to consumers which is why the dollar plus method sold 3 percent more.

Articles cited



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


Post resource - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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