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There's another way a subscription service can work: with ad-supported or sponsored books.
The Prime library is a loss leader for Amazon--they've always lost money on books to get people to the tires, camping gear, and cameras. eBooks are the perfect loss leader for them--very little per-unit cost (fractions of pennies when authors make their books voluntarily free) and an eager pool of suppliers (quarter-million indie authors.) And Amazon is taking it a step further by creating its own content. They've been publishing for nearly two years and are now making movies and TV shows. How much longer until they are signing or assembling bands?
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