Being a Prime member at Amazon just got a bit sweeter with the announcement late yesterday that the online giant has signed a licensing agreement with MGM to offer hundreds of classic movies and TV programs to members. The service, which is available for $79 a year and offers customers free two-day shipping, already offers over 18,000 movies and TV episodes for instant streaming.

“Our customers tell us they love having tons of movies and TV shows to choose from, which is why we are focused on adding even more titles to our already extensive Prime Instant Video library,” said Brad Beale, director of digital video content acquisition for Amazon. “MGM offers one of the most distinguished catalogs in all of Hollywood, and this deal will bring Prime Instant Video customers hundreds of new titles to enjoy on their Kindle Fire or any device compatible with Amazon Instant Video.

Customers can enjoy favorites like The Silence of the Lambs, Dances with Wolves, Rain Man and The Terminator, as well as fan-favorite TV series like Stargate.”

For more, click through for the full press release from Amazon.

Late yesterday, Amazon announced that Kindle customers will soon be able to borrow eBooks from more than 11,000 U.S. libraries. Amazon’s Kindle Library Lending project will enable users to check out eBooks from local libraries and then read them on their Kindle or on any device with Amazon’s free eReader software installed.

But wait, that’s not the only cool thing about this service. Unlike traditional libraries, which don’t allow borrowers to write in books, with this new service readers can make notes and highlight as much as they want. “We’re doing a little something extra here,” said Jay Marine, director of Amazon Kindle.

“Normally, making margin notes in library books is a big no-no. But we’re extending our Whispersync technology so that you can highlight and add margin notes to Kindle books you check out from your local library. Your notes will not show up when the next patron checks out the book. But if you check out the book again, or subsequently buy it, your notes will be there just as you left them, perfectly Whispersynced.”

Sounds pretty cool, right? I wonder if this will in any way help save libraries? Or, will this cause them to be obsolete faster? Either way, its a nice feature for Kindle owners. It would be nice if this could aslo help keep libraries around longer. We’ll see.

Also, what will this mean for the Amazon tablet rumored to be launching later this year? My guess is they will probably hit around the same time.

Amazon is working with OverDrive on its Kindle Library Lending program, which it says will launch later this year. Click through for the full press release from Amazon.