Some people seem to be missing the point about "why Amazon would do this and 'cannibalize' itself". Here's why - yes, some people are going to pay the $10 a month, and read 5 books a month, and those will be like 1 percent of their e-book customers. The vast majority, if switched to this model, would pay $10 a month, and only read 2 books a year. The rest, will keep buying ebooks just like now, so nothing will change from that perspective.

I'm guessing Amazon has enough data to know that this will end up profitable for them. In a way, it's just like Prime. Some probably order a ton of stuff every month, becoming unprofitable Prime members for Amazon, while others only a couple of year, yet still pay $99 a year for free shipping.

It's only like any other "unlimited" deal out there. Some customers will be very unprofitable as they will take full advantage of the "unlimited" offer, but the vast majority of the customers will more than make up for it.