LEAK: GOOGLE LAUNCHING AMAZON STYLE PRIME PROGRAM

Sources are saying that Google is in talks with various retailers and shippers to create a service that lets customers receive within 24 to 48 hours. According to sources cited by the Wall Street Journal, the company's effort is motivated by the success of Amazon's Prime service, which allows customers to receive many purchased items within a day or two for an annual fee of $79. Google, in turn, has apparently pitched the project to retailers such as Macy's, Gap and OfficeMax. Under the proposed system, when shoppers place an order on an affiliate's website, Google's system could kick in to offer them an option for same-day or possibly next-day delivery, said a person familiar with the matter. Sources indicated that Google plans to start a pilot test of the service in the San Francisco Bay Area sometime in 2012.

AMAZON PRIME MEMBERS GET NEW LENDING LIBRARY

Amazon's home page has a new message for Prime members from CEO Jeff Bezos, indicating that their membership plan has a new bonus: free books. The Kindle Owners Lending Library service offers up to one book per month from a selection of thousands of titles, including "over 100 current and former New York Times Bestsellers" with no due dates. That's in addition to the free two-day shipping and access to TV shows and movies offered through Prime Instant Video as a part of the $79/year package.

AMAZON STARTS FREE MOVIE & TV STREAMING FOR ITS PRIME CUSTOMERS

This morning Amazon announced a very useful perk for all their Prime subscribers: free video streaming. Users now have have access to about 5000 movies and TV shows which they will be able to stream on-demand, without having to pay anything above their normal Prime subscription rate ($79/year).

Amazon Prime was originally devised as way for frequent Amazon.com customers to get free two-day shipping on all their purchases. Now it’s not just a free shipping service that ties people into Amazon for all their online purchases, but also a Netflix competitor.

Amazon’s selection isn’t up to the same level that Netflix is at (about 20,000 shows/movies), but it’s essentially free so it’s hard to complain. Netflix’s streaming-only account is $96/year so if you don’t mind the smaller selection offered by Amazon, you can get free shipping on all your goods and save $21 a year by going with Prime. [Geek]