The $9.99 per month Kindle Unlimited program offers access to some 600,000 titles in the Amazon Kindle format.
Subscribers will be able to access the books on Amazon's Kindle tablets, as well as other devices with a Kindle app, including iPads and iPhones, Windows devices and Android-powered mobile gadgets.
"Finding a great book is easy, and there are never any due dates," Amazon said in its announcement.
"Customers can choose from bestsellers like 'The Hunger Games,' 'Diary of a Wimpy Kid,' and 'The Lord of the Rings.'"
About 2,000 audio books will also be available through the Audible service.
The service is being launched for US customers, with other countries likely to follow.
Amazon is using a model made popular by Netflix for films and television programs, but also by services such as Spotify for music.
In the book segment, similar services are offered by Scribd, which offers some 400,000 titles for $8.99 per month, and Oyster, which charges $9.95 for access to its catalog of 500,000 books.