The “Free” Kindle Owners’ Lending Library
According to Wired Magazine (http://www.wired.com/epicenter/2011/11/kindle-lending-library/), Amazon Prime subscribers that also own Amazon Kindles are eligible to borrow books, for “free,” from the new Amazon Prime Kindle Owners’ Lending Library (say that three times fast… actually, say that three times at all). Think of it like the Netflix of library e-books. There are no late-fees, no encryption that scrambles your file after a month (but of course there’s a $79/month membership fee).
Amazon Prime Kindle Owners' Lending Library (via Wired.com)
While this is another outstanding perk for Prime subscribers (along with fast shipping and instant video streaming) this does pose the question “How is this any different from selling books?” Borrowing one book/month (if you remember every single month) will basically amount to $6.58/book, assuming you don’t use any other features. Most back-shelf titles will hardly even reach that amount. And is one book/month worth $79 when you can lend for free from real public libraries?
This relates to 2040 if you think of the information cascade theory and its relation to decision-making in networks. The analogy we used in class was that of urns with colored balls (red, blue) in them. You are told to pick one ball from either of these urns, and make an inference to what color the majority of the balls are. The only information you are given is your choice, your prediction, and the predictions of others before you. Essentially, you can only choose what you have presented to you immediately.
With that said, the lending library presents with you two options: purchasing the book (in this picture, the price is $4.17) and lending for “free.” Think of them as the red and blue balls, respectively. If people are only aware of the option of purchasing, they will purchase the item because Amazon is a site to purchase things from. Throw in a blue, lending ball, things get a little hairy. You can borrow books? For free? Kind of free? Naturally, everyone would prefer “free,” despite the actual implicit cost behind the membership. Think of public libraries as the green ball in the other urn. It costs less, but how would you know it exists if it’s in the other urn?
This is the tragedy of the information cascade. Decisions are made based on present information and the information immediately preceding it. Implications for future design? Putting all of the colored balls in front of you. Think Google Marketplace, which presents prices and shipping costs and compares them side-by-side. Naturally it doesn’t suggest public libraries, but think of the possibilities when that is integrated into social media. Decisions are not only made more efficiently and in the better interest of the consumer, but are also shared with others, influencing further decision making.
Read more about the Kindle Owners’ Lending Library here: http://www.wired.com/epicenter/2011/11/kindle-lending-library/
Hello,
Just wanted to say that the Amazon prime account is 79/ year; not per month. Given how much I order from Amazon, as well as the books I read, I think a prime membership is great value; plus I think students can get it for ~40 / year instead of ~80/ year.
And their lending library already has some good books..
MM