Amazon releases Kindle version with ads on-screen

Amazon is offering a new Kindle price-point and "feature" - The Kindle With Special Offers.  The new Kindle ereader comes with a new price point - $114.00 ($25.00 off regular price) as well as on-screen advertising.

Designed to be unintrusive to the reading experience, the ads take the form of screensavers and banner ads at the bottom of the home screen.

At initial release time (May 3rd, 2011), the special offers bundled with the device include the ability to get a $20 Amazon gift card for $10, special pricing for Audible.com audio books, $1 albums at the Amazon mp3 store, and discounts at the Amazon Denim shop.

Amazon is seemingly beta testing this idea, bundling a Kindle app with the device called AdMash which seeks user input in determining the kinds of ads users want to see as well as the type.