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"But I'm also increasingly concerned. There are so many free e-books that basically you could stuff your Kindle or Sony Reader with free books and never have to buy anything."
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So the market is saturated with content and because of that people see less and less value in it. That's probably true. But it means that in order to be successful you have to rise above the noise and offer something that is deemed to be of value. Welcome to the real world.