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U.S. online retailer giant Amazon.com on Monday announced that it plans to sell a cheaper version of its Kindle electronic reader but users will have to view on-screen ads.
Amazon said in a press release that the new electronic reader, named Kindle with Special Offers, will cost 114 U.S. dollars, 25 dollars less than the cheapest ad-free Kindle model. The new device will ship on May 3 and is now available for pre-order to U.S. customers.
"We're working hard to make sure that anyone who wants a Kindle can afford one," said Jeff Bezos, Amazon.com founder and chief executive officer.
The Seattle-based company said the sponsored screensavers will display on the Kindle screensaver and on the bottom of the home screen, noting that they will not get in the way of reading.
General Motors Co.'s Buick, Procter & Gamble Co.'s Olay skin products and Visa Inc. will sponsor the first series of on-screen ads for Kindle.
Currently, the most expensive ad-free Kindle is the 3G-enabled model that costs 189 dollars. Amazon has not released the figures of its Kindle sales. Analysts estimated the company sold more than five million last year.
Statistics from Forrester Research show that the digital books market was 966 million dollars in 2010 and is expected to triple by 2015.
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