Amazon wants to build an e-library

Online peddler of books and things, Amazon is deep in discussions with book publishers about building a online subscription-based library of digital books.

According to a report in the Wall Street Journal, the response to Amazon's overtures has so far been mixed, as publishers mull the implications for their revenue streams. Amazon reportedly wants to offer a book-rental service initially as part of its Prime scheme, which offers subscribers two-day shipping and access to the its streamed digital movie and TV collection.

Customers would pay an annual fee to access a library of content,in the manner of online movie service Netflix the report states.

Amazon is said to be waving “substantial” rewards to publishers in a bid to bring a subscription-based book-club model to its successful Kindle ebook reader range.