Kindle Fire, probably the only tablet that costs more money to manufacture than its selling price might get ads on its home-screen in the near future. AdAge reports that Amazon has already started sniffing for ad agencies who’d like to buy an ad spot on Kindle Fire’s home-screen for a colossal $600,000. This idea is not new; Amazon has been selling a cheaper ad-supported version of Kindle e-Readers which seems to be working fine.
It’s possible that Amazon might not subsidize Kindle Fire’s cost because of these ads which might create resentment in users. So far, we’ve seen Kindle Fire becoming the most popular sub-$300 tablet and I don’t think Amazon would be interested to sabotage their success graph. After all, had Amazon not making profits by selling its entertainment content, its Kindle Fire range wouldn’t have been going this strong.
This ad deal might not go as Amazon intends it to. With net number of Kindle Fire devices and user demographics out of the picture, I don’t think there would many advertisers willing to push their riches in an unknown environment.