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How does Netflix work? I would guess the creators get some small amount each time someone views their content. That's pretty much how I've always said people should be paid when someone downloads from a "pirate" site to legitimise the way people consume entertainment these days.
If Amazon did do something like that, it would either be entirely for independent writers, or it would specifically exclude them. I can't really see the major publishers being interested in a model like that when they are used to getting $10+ per ebook. It wouldn't make financial sense for them.
I doubt it would be all you can read either, unless they started using the Kindle feature that lets them know when a book has been read in its entirety. People would just download thousands of them every day, like they do on the pirate sites, and maybe read 1% of them.
Unless they were stored and read online, and you never actually got to own them while you were reading. That wouldn't be much fun for readers with spotty internet access.
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