Amazon to Sell Ad-Supported Kindle for $114

Amazon has done a new biz model in the e-reader market on Monday with an ad-sponsored version of the Kindle. Called just the Kindle with Special Offers, it will have ads both on the bottom of the home page and on its idle screens. The new reader would drop the price by $25 over a Wi-Fi version, to a new low price of $114, and should ship both online and through Best Buy and Target on May 3.

Buick, JPMorgan Chase, Olay, and Visa are to be some of the initial sponsors. It would be virtually identical in hardware to the Wi-Fi model. None of the books themselves will have ads, Amazon was keen to emphasize. Readers can have ad offers e-mailed to them and can fine-tune the preferences.

You’ll receive special offers directly on your Kindle.

Examples of the Special Offers

• $10 for $20 Amazon.com Gift Card
• $6 for 6 Audible Books (normally $68)
• $1 for an album in the Amazon MP3 Store (choose from over 1 million albums)
• $10 for $30 of products in the Amazon Denim Shop or Amazon Swim Shop
• Free $100 Amazon.com Gift Card when you get an Amazon Rewards Visa Card (normally $30)
• Buy one of 30 Kindle bestsellers with your Visa card and get $10 Amazon.com credit
• 50% off Roku Streaming Player (normally $99)

The move was explained by Kindle team lead Jay Marine as a way to expand the reach of the e-reader beyond its current audience.