* Investment "significant" in J.K. Rowling license-CEO
* Move may spur more Kindle usage, Prime memberships-analyst
By Alistair Barr
SAN FRANCISCO, May 10 Owners of Amazon.com Inc's
Kindle e-readers and tablets will be able to borrow
Harry Potter e-books in a move designed to encourage more people
to use the devices and sign up for the company's Prime service.
Amazon, the world's largest Internet retailer, said on
Thursday it bought an exclusive license from author J.K.
Rowling's Pottermore e-book business to make all seven Harry
Potter e-books available to borrow through the Kindle platform.
The program begins June 19 and includes Potter e-books in
English, French, Italian, German and Spanish.
Amazon did not say how much it paid for the license, but
Chief Executive Jeff Bezos suggested the deal was part of its
plans to spend heavily to promote Kindle devices and its Prime
service. Prime offers free two-day shipping and unlimited video
streaming for $79 a year in the United States.
"This is the kind of significant investment in the Kindle
ecosystem that we'll continue to make on behalf of Kindle
owners," Bezos said in a statement.
Through the Kindle Owners' Lending Library, e-books can be
borrowed as frequently as once a month. Amazon said the library
has more than 145,000 e-books to borrow for free. Kindle owners
have to have a Prime membership to access the Lending Library.
"Sales numbers for this series are off the charts, so it's
probably a smart investment," said R.J. Hottovy, an equity
analyst at Morningstar. "This could drive higher e-book
readership, more adoption of the Kindle digital platform and
more Prime memberships."
Amazon's stock rose about 2.7 percent to $225.67 shortly
after midday, bringing this year's gains to 29 percent.