Unique Original Articles » Advertisement supported Kindle to ship on May 3

Advertisement supported Kindle to ship on May 3

Author: Barbara Coswell

E-readers, tablets and other mobile devices are upending the traditional print industry, which suits Amazon just fine, as a result of the Kindle. 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. What's the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, can be ad-supported. Post resource - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Is an ad-based Kindle worth $25 off standard price?



The price of the Amazon Kindle has fallen a few times since the first generation was introduced at $399 in 2007. This is the first time, however, that a price reduction will consist of the placement of ads on the popular e-reader, a move geared to capture ground from the iPad in the e-reader market. May 3 is when the kindle will start with Special Offers. The advertisement-supported version can be found in Best Buy and Target for the Kindle 3.

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.


An ad-based kindle might bright out typical concerns. These concerns were displayed as responders on a Christian Science Monitor article on price cuts. One reader argues for a free ad-based Kindle with $0.99 books, however that reflects another thorny issue concerning the price of e-books. The $25 discount is not enough, according to some readers. Most experts' say it is okay though since the ads 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.


Price matters



Getting to the $99 Kindle for Christmas 2011 is important, TechCrunch believes. That is what the $114 Amazon Kindle is leading up to with its Special Features. According to traditional marketing, 99 is magical number.

However, new research from New York's Columbia Business School indicates that the advantage is more imagined than it is real 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. There was a 3 percent increase in sales of dollar plus method goods. This is because they did not seem as manipulative to consumers.

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


Article source - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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