I'm going to pick this apart, because I don't think it's feasible...
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Originally Posted by vrodbrad
Where we would get the books would be from publishers and authors.
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How will you convince the publishers to sell through you?
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Originally Posted by vrodbrad
We would not have DRM restrictions
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How will you convince the publishers to agree to this? This is a very big question, because
most "mainstream" publishers are not ready for drm-free files yet. Baen is one exception, but they cater to a very niche genre.
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Originally Posted by vrodbrad
and all books would be able to work on all devices.
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ePub and mobi should cover most readers, but one file will not work on all devices. There is no standard yet.
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Originally Posted by vrodbrad
The books the individual would be able to keep even if their membership expired for they paid the money to keep them.
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I would sign up for one month, download several hundred books, then cancel. You will
never get publishers or authors to agree to this. It wouldn't be profitable for anyone, including your theoretical business.
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Originally Posted by vrodbrad
As said this is just for a class project only and would not be for a actual start up business.
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I assume your professor will want a plan that
could work? This can't work unless you're able to solve some of the questions I've raised here. I'm not saying it can't be done, but I don't see a way to do it.