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Of course, by the time THEY are ready, people could have other options. I have a friend who is in the know who says enhanced dvds of 3d movies are going to be the next big thing. And Microsoft is working on a video game system that does not need any controllers except the human body. There's two more entertainment options for people to spend their money on.
As far as books themselves go, there are a number of things going on. Firstly, we have this growing trend of established authors taking their backlists into their own hands. I wouldn't be surprised to see a few more indie publishers wide up and appropriate the Baen model. There'll be a Smashwords success story or two. And those that really must read the new Stephen King or Nora Roberts but can't because the publishers won't sell to them will be too cheesed off to buy the hardback and will seek out alternative sources. By the time Big Publishing wises up, they'll have a ton of customers who either have found other ways to get their stuff, or have found other stuff they'd rather get.
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