is in talks with publishers to launch an e-library service where customers will be able to view e-book content for a monthly membership fee similar to Netflix.

Few details are available about the progress of the talks but reports have been released some publishers are reluctant to get involved with the project, believing that this step could reduce the value of books, the Wall Street journal reported.

Those familiar with the talks told the Journal that the new E-book library content would only be available to Amazon Prime customers who pay $79 a month for unlimited two-day shipping and for access to a digital library of movies and TV Shows.

Those participating in negotiations also reported that Amazon Prime customers would be limited to download a certain amount of content per month.

The talks have come ahead of Amazon's much anticipated release of its all new tablet, that is set to rival Apple's iPad. Few details are known about the tablet that is rumored to be released by October.

Current rumors suggest that the screen will be roughly nine inches and will operate on an Android system and according to the Journal it will not have a camera but will come at a rumored low price of $250.

The tablet will have deeply integrated Amazon services such as Cloud Player, Instant video Player, Appstore and the Kindle App.

The success of Amazon's kindle has given the Seattle based giant a leap ahead this year after they reported a 51 per cent jump in revenues for Q2 2011 and the fastest growth in a decade, Mashable reported.

According to a report released by Forrester analyst Sarah Rotman Epps asserts that Amazon could sell between three and five million tablets in the fourth quarter if it sells them for less than $300

Epps sees Amazon creating a layer of software and services on top of Google's Android smartphone and tablet software, Forbes reported. That could create the kind of rich developer ecosystem that Apple's competitors have lacked.