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It works as well as the rights holders will allow it to. All of the pros and cons being mentioned are the same ones that were mentioned when B&N started LendMe. I assume Amazon just matched B&N's feature, as opposed to improving on it, because the publishers were simply extending the same rights to another platform.
One thing that Amazon's lending program demonstrates is that competition is good. B&N innovates with LendMe, Amazon matches it. Now that Amazon has come up with the brilliant "give a book" feature, I don't doubt that B&N will match it in relatively short order. Little by little, we, the consumers, benefit from the attempts to different the various platforms.
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