Does e-book lending lead to e-book sales?
Does lending e-books ruin the business model for e-books? Can e-books be lent and still allow authors and publishers to make money? This is a new industry so we can't be certain of an answer. One indication, however, seems to show that e-book lending does not cannibalize e-book sales.
In a recent press release by Amazon, an example is provided of how e-book lending can actualy help sell e-book sales. 24% of customers who borrowed Suzanne Collins’ “The Hunger Games” bought “Catching Fire” and 24% also bought “Mockingjay” which are the two sequels. The entire series is available to borrow for free in the Kindle Owners’ Lending Library, so these customers could have lent the sequels. However, almost of a quarter of the lenders paid for the sequels.
Looks like the story of whether readers buy or borrow e-books is more complicated than most people think. Readers doen't always borrow e-books. They purchase e-books when they really love the series. Or when it's convenient to them. More research needs to be done.