Book lending a $1 trillion dollar industry with $0 profit?

MobileRead picks up on a story about offline book lending "costing publishers $1 trillion". Apparently, there's a network of illicit buildings where you can take any number of books, do anything you want with it (read it, stare at the front cover, place it on your coffee table and pretend you bought it and show it off to all your friends), and then return it when your done. This sounds worse than a brothel!