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September 12, 2011

Amazon to launch digital book library: report

Targeted at tablet owners, new service to come at an annual fee, says WSJ  

By CBR Staff Writer

E-Commerce company Amazon is planning to offer a new media library service targeted at tablet owners.

The Wall Street Journal reported, citing people familiar with the matter, that the e-Commerce company is in talks with some publishers about the new service which is believed to be similar to the Netflix model.

The report said that the new service would require customers to pay an annual fee to access a content library.

There are reports that Amazon is offering publishers a large chunk of its profits for the new service.

PaidContent reported that sources said that Amazon is offering publishers "a lot of money for the rights to ‘wide swaths’ of backlist e-books.

The fees could increase if and when frontlist titles are included, said the report.

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Amazon is seeking rights to the content on an exclusive basis, added the report.

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