Amazon May Launch Netflix-like Service for Books

Posted on September 11, 2011

The Wall Street Journal is reporting that Amazon is talking to publishers about launching a service for ebooks that would work like Netflix does for movies. Amazon customers would pay an annual fee for access to a library of ebooks.

The WSJ says some publishing executives are concerned the plan could lower the overall value of books. Publishers are also worried that if they agree to Amazon's ebook subscription plan then it may hurt their existing relationships with other ebook retailers. It would completely change the way books are sold. It would make it difficult to ascertain which books are bestsellers if ebooks start being sold together in large bundles.

The WSJ article also says Amazon wants to offer an ebook library of older titles to customers that use its Amazon Prime service, which costs $79 a year. Amazon.com has been enhancing its Amazon Prime service over the past year by adding free movie and tv content. ZDNet notes that Amazon may eventually try to throw free music content into Amazon Prime as well.

The Wall Street Journal story did not receive any immediate comment from Amazon. The WSJ also says it cannot confirm that any major publishers have agreed to Amazon's ebook subscription plan. Selling books in this manner may not be something publishers can afford - at least not for new titles.