• Bloomberg Businessweek, Tuesday, April 12, 2011 11:21 AM

Who says advertising has no place in the future of paid content? Amazon just unveiled a $114 Kindle, which requires owners to view ads in exchange for the new low price. The Kindle With Special Offers, so-called, costs $25 less than the current lowest-priced model, according to Amazon.

"Chief Executive Officer Jeff Bezos is counting on the Kindle, unveiled in 2007 for $399, to capitalize on digital-book demand," writes Bloomberg. "With the new approach, he gains a bigger price advantage over rivals and opens an additional source of ad revenue." General Motors' Buick, Procter & Gamble's Olay skin products and Visa will be among the first advertisers on the new e-reader, Bloomberg reports.

Amazon also plans to put its own promotions on the device, offering readers a $10 gift card for $20 worth of merchandise on its site or 50% off a Roku streaming-video player. Over time, Amazon will phase out its own ads on the Kindle and replace them with promotions from other companies, Jay Marine, director of Kindle products, tells Bloomberg.

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