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It's like the early days of mp3 downloads. Publishers and music companies both thought they could sell their products at a price very close to the price charged in retail shops. In doing so they would be reaping a much larger profit margin as they wouldn't have to manufacture a product or pay a cut to the retailer, wholesalers, transportation etc.
The problem with that model is it doesn't work. It just smothers the market for ebooks at birth
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