http://bottomline.msnbc.msn.com/_new...retails-future
Easy to see why Amazon throws in the Prime ebook library and streaming videos: 130% *more* merchandise bought by Prime customers.
As usual with Amazon, things aren't what they seem to be: Prime is a loyalty program, not a free shipping club. And the Prime Library is meant to cement loyalty on *both* sides; authors as well as readers.
That explains the Library cash pool, too. It's like the creditcard rewards programs: A kickback, not from library usage per-se, but from the bigger Prime revenue pool. Which means they can keep the library running indefinitely if they choose to.
That's some fancy strategizing going on there.
