According to multiple surveys (including one recently run by Opus Research) majorities of people are happy to endure advertising in exchange for free services. Ad-supported smartphone apps, for example, are much more popular than their ad-free paid counterparts.
Yesterday Amazon introduced an aggressive new array of new Kindle tablets. The specs -- and especially the pricing -- are impressive. It turns out, however, that there's a catch: ads ("Special Offers").
Previously Amazon had subsidized the cost of its lowest-priced Kindle eReader with Special Offers on the lockscreen. If it turned out that you didn't like the ads, you could "buy out" of them.
Yesterday it was discovered that all the new Kindle tablet Fire/HD models will feature these Special-Offer ads on the lockscreen. And, according to a statement provided by Amazon to CNET, there's no way to get rid of them. This controversy undermines what was otherwise a very successful launch.
The fact that Amazon won't allow consumers to "buy out" of the ad clutter is terrible and will turn off many people (though not all). It's a horrible policy. It's also one of the factors, it now appears, that allowed Amazon to so aggressively price these devices -- and undercut iPad's pricing so significantly.
Let's hope that Amazon is shamed by negative PR into allowing consumers to opt-out or buy out of receiving these ads. Alternatively let's hope that the marketplace speaks and that consumers stay away.