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Originally Posted by junkyardwillie
Well Amazon is already subsidizing the price of its eBooks and the reader to push for market share, why would they further increase their losses by giving a subsidy on the price of ebooks with ads? They may work it in slowly but I think they believe this will be a viable alternative for their already "low" prices for ebooks. They need to figure out a way to get margins for eBooks up and adding Ad revenues on top of what the consumer pays is the best way to do it from a business stand point. Theres a risk that people will revolt but it depends on how blatantly the ads are placed in the books.
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That's my suspicion as well. The Ad revenue will be in addition to sales revenue, not a replacement for part of it. Whether or not they can pull it off without angering their customers will just be a matter of how well they spin it.
They're probably not going to say they're adding Ads without lowering the current price. But they might say that all of the prices are going up, except for the ones with Ads in them. That makes it sound more like the customer is getting a better deal. Put it in a commercial with a cute gimmick, and the next thing you know a lot of customers will be convinced that they're saving money with the new "experience enhancement" technology.