Cheaper Kindle, Tarnished Reading Experience? (AMZN)

Once upon a time, when consumers paid for entertainment, they only paid once. Believe it or not, we could actually go to the movies, hand over the admission fee, and enjoy a couple hours of commercial-free entertainment. Crazy concept, wouldn't you say? Advertisers would. They jump at the chance to pummel consumers with ads, even if it means diminishing the value of paid entertainment. Just look at what happened after the introduction of product placement: we got movies like The Weather Man. (That is no ordinary milkshake dripping down Nicolas Cage's shoulder. As specified in the film, that beverage is actually a Frosty from Wendy's WEN.) While readers don't have to worry about blobs of branded milkshakes cropping up in their favorite novels, Kindle users could soon expose themselves to sponsored screensavers. Amazon AMZN launched this program today with a special version of the Kindle that retails for $114 ($25 less than the traditional model) that feeds sponsored screensavers to the device. Basically, it's Amazon's way of giving consumers a discount for a nuisance. From a marketing perspective, Amazon might have just made a brilliant move. There may very well be some buyers who were unsure of the Kindle that will now be swayed by the discount. To further entice consumers, the company will offer special deals – such as a $20 Amazon gift card for $10 and six audible books for $6 – to those who buy the $114 model. But while this might seem like an interesting way for Amazon to expand its product lineup, there is a hint of danger in the air that's hard to ignore. For hundreds of years, books have existed without advertisements for cars, banks, credit cards and skin care products. Those who purchase the “Kindle With Special Offers,” however, will be exposed to ads from Buick GM, Chase JPM, Visa V and Olay PG. Never mind the fact that consumers currently have a choice; if they accept ads from one model of the device, the day will come when Amazon expects us to accept them from every Kindle available. Other e-reader manufacturers are sure to follow suit, as will book publishers, who are eagerly seeking new ways to turn a profit. If this sounds like nothing more than the worst-case scenario, let's not forget about the evolution of movie theaters. Despite charging more than $9+ per ticket, $5+ for popcorn, and $4+ for a large drink, theaters repeatedly claim that they aren't making enough money, hence the need to show 30- and 60-second advertisements before each film. Ah, commercialism. Isn't it grand? If you agree – if you don't mind advertisements enveloping every corner of the world – then maybe Amazon has made the right decision. If not, however, consumers would be wise to spend the extra $25 and buy the original Kindle. Whatever you decide, your next Kindle purchase is likely to impact the publishing industry for many years to come. Remember that.