Amazon has found yet another way to capitalize on the success of the Kindle Fire tablet, through advertising this time. They intend to place an ad space on the welcome screen of the device and price it at $600k. As you probably know, Amazon is selling the Kindle Fire at loss, for $200.
They’re paying a bit more to manufacture, ship and promote the tablet, but they get their money back from the services that they provide on the slate… and now ads. So, if you have $600,000 laying around you can advertise your album, painting, book or whatever on the ad space of the 7 inch device. For that amount of money you get 2 full months of ad showing up at every boot. There are already sponsored screensaver ads that appear when the device shuts down, so it’s not that big of a surprise.
However, the advertisers aren’t quite convinced by this business model and Amazon isn’t sure how to implement this feature just yet. They also haven’t decided if they’ll use it on current Kindle fires or future models… They could upset customers and they’re worried about that, especially if the product is something cheesy like Macdonald’s or Starbucks.