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For one thing, people are buying more and more books in Amazonia, and more and more of them are on Amazon's ebook platform the Kindle. In May this year, Amazon announced that, for the first time, it was selling more Kindle versions of books than paperback and hardbacks combined, and (here's the thing that doesn't get quoted so often) sales of print books were still increasing.
Amazon also announced that, in the year to May 2011, it had seen the fastest year-on-year growth rate for its US books business, when expressed in volume and in dollars. This included books in all formats, print and digital. In the UK, less than one year after opening its UK Kindle store, Amazon.co.uk is selling more Kindle books than hardcover books. And again, this is while hardcover sales continue to grow.