Amazon may add e-book lending service that's sort of like Netflix
(CBS) - Booklovers might get a little help from Amazon by way of an e-book lending service, based on the Netflix model.
According to the Wall Street Journal, Amazon is in talks with book publishers to work out a deal that would allow the company to lend digital books to customers who pay an annual fee. Details of the proposal are unclear at this time, but the rumored rental service would be made available to Amazon Prime members.
Amazon Prime is a membership program that gives Amazon shoppers free or reduced shipping fees, as well as a limited library of streaming films and TV shows. Members pay $79 annually.
The Journal reports that the publishers in question are skeptical of a lending service, fearing it could devalue books and hurt relationships with book retailers.
It's no secret brick and mortar book and music chains are suffering. National retail chain Borders recently went out of business and Barnes & Noble has been struggling. According to Bloomberg, the sales of e-books doubled from $169.5 million to $441.3 million in the U.S. last year.
Netflix's model has been considered successful for the movie rental business - almost too successful.
The service has been cited as one of several reasons why movie rental chains like Blockbuster have been put out of business.
Netflix lets customers rent DVDs and stream movies for a monthly fee. Customers pay a tiered fee based on how many discs are out at once. Plans start at $7.99 for streaming only.
Similar models have been adopted by the music industry for music streaming. Services like Spotify, Rhapsody or the Sony Entertainment Network give users access to a full streaming library for a monthly fee.
Adding new opportunities for online shopping helps deter illegal downloads for the music and movie industry, in theory. It is our opinion that creating a convenient and cost-effective way for consumers to purchase books, films and music is the key to keeping potential pirates on the straight and narrow.
Publishing companies have already considered alternate business models.
In May the New York Times reported Simon & Schuster, Penguin Group USA and Hachette Book Group are planning a website called Bookish.com (not to be confused with Booki.sh), which will feature content from the three major publishing companies. The main objective of the site is to become a resource for reviews and information on books, but will also be a hub for e-book sales.
None of the details have been confirmed for the Amazon deal, but if done correctly, both services could bring new life to book publishing.