12 April 2011 | Author: C. TateAmazon Kindles revenue stream with ad-sponsored ebook reader

Amazon's new, cheaper Kindle will retail at $114, which is $25 less than the standard model the e-commerce website already sells.
The lower cost for the new models of Amazon's ebook reader have been subsidised by advertisements, as the devices will now have 'sponsored screensavers'.
Currently only available in the US, the device will be bundled with several special offers, including a $20 Amazon gift card for the price of $10 and six audio books for $6, amongst others. A Kindle app called AdMash will also be installed on the device that enables the user to rate the advertisement screensavers and brands.
Tech Crunch's
Jason Kinkaid believes Amazon is primarily securing a piece of a newly-emergent market for their own: "Right now, we're in a sort of land-grab for the eReader market, with
Google Books, Barnes & Noble's Nook, and iBooks all duking it out."
"Amazon has been ahead of the curve, and they've done a great job offering Kindle applications across a variety of devices (there's even a web app). But the books you buy on the Kindle are still laden with DRM, which means they can't be used on a competitor's eBook reader," he said.
"And if Amazon hooks you on the Kindle now with these cheap devices, there's a good chance you'll stick with the platform for years to come."
This latest Kindle will be shipped from May 3rd and can be pre-ordered now.