Amazon Unveils Kindle Lending Library

Hoping to further kindle the flames of affection among its Kindle users, Amazon today unveiled its long-rumored Kindle Owners' Lending Library, which offers -- you guessed it -- free books to its Prime customers.

How can anyone make money doing this?

Well, it's not all that mysterious, and no, Amazon is not turning itself into a charity.  First, the offer is good only to Kindle owners and the "free" library books will display only on Kindles and Fires, not on laptops, desktops, TVs or smartphones.

And second, the offer is extended only to Amazon Prime members, the company's loyal customers who pay $79 a year for a variety of perks, including free two-day shipping on most products.

So, to get temporary use of one book per account, you need to spend $79 plus $79 or more for a Kindle e-reader or Fire. 

Initially, the lending library consists of about 5,000 available titles.  Not all publishers have agreed to participate but Amazon will no doubt keep applying heat until the laggards catch fire.

The terms are pretty simple: as long as you're a Prime member and have a Kindle or Fire, you can borrow one book for as long as you want. There's no time limit.  The ony restriction is the one-per-customer limit.

For those who read a lot, it's a deal that's pretty easy to warm up to.  

It's not a bad deal for Amazon either.  Besides encouraging the sale of more Kindles and Fires, Amazon gets more Prime members, who tend to buy more -- in most cases, much more -- than Amazon customers who haven't splurged for the Prime membership.

The question now -- to be answered in the next chapter -- is how Barnes & Noble, Apple and other ebooksellers respond.