Amazon: Major U.K. Gains Ahead

Amazon (NASDAQ:AMZN) has announced plans to launch its Kindle Book Lending Library service in the U.K., providing Amazon Prime members in the market access to over 200,000 e-books. The cloud-based service, which is already highly popular in the U.S., will be offered to Prime members in the United Kingdom in the hopes of boosting Kindle sales.

The move stands to be doubly good for Amazon’s U.K. business: Kindle owners will now have a stronger incentive to register as Prime members and Prime members who don’t yet own a Kindle will have all the more reason to finally buy one.

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Any way you slice it, Amazon stands to make money.

While Chief Executive Jeff Bezos has recently admitted that the company actually makes little-to-no money on the physical Kindle itself, the goal is simply to get as many of the tablet devices into consumers’ hands as possible. “We sell the hardware at a cost,” Bezos said. “We want to make money when people use our devices, not when they buy them.”

Where Amazon has decided to generate its profits is on the sale of millions of books, games, apps, and movies available for purchase to Kindle users. The strategy has worked thus far — allowing Amazon to sell its Kindle e-readers at a very competitive low price — and it should continue to make shareholders happy with this latest move that promises to grow Amazon’s U.K. business.

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