Monday, April 11, 2011

Amazon now offers Kindle with 'special offers' and sponsored screensavers in exchange for $25 discount

Will consumers accept ads in exchange for a discounted price? That is the proposition Amazon is testing out as they announced today a new Kindle price tier: a $25 discount in exchange for ads on your Kindle.

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"How are we doing this?" the Amazon.com home page asks. "We took our bestselling Kindle and make a version with special offers and sponsored screensavers. Companies sponsor the screensavers, and you pay less for your Kindle."

Buyers of these ad-embedded Kindles will be able to customize their screensavers in order to better match up owner preferences.

Will $25 be enough of a discount to drive sales of these ad-embedded Kindles? We probably will not find out as Amazon.com does not report its Kindle sales numbers except in the most vague terms.

Amazon.com already has four announced sponsors: Buick, Chase, Olay and Visa.

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