Amazon to launch e-book subscription service

Amazon is set to launch a new e-book service that will enable customers to access a library of books for a fixed monthly fee.

It is thought the service will feature mainly older books with restrictions on how many titles a user can access each month.

The library will be made available to Amazon Prime subscribers, a $79 a year service that gives people access to films, TV shows and free shipping.

According to the Wall Street Journal, Amazon will offer publishers a fee for participating in the subscription service.

Amazon is also expected to launch a 7-inch tablet PC in October, running on Google’s Android OS. Forrester Research forecasts that Amazon will sell up to five million tablets in Q4 2011 if it markets the product under $300.