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Definitely the storage issue. Real estate is a fortune here, I just don't have the space for tons of books. Plus I like the idea that I can carry more than one book around with me whenever I want.
A secondary reason was to have something to do at the gym. I am not a big music person, so having the text to speech feature on the Kindle was the main reason I upgraded from my Sony. I like that I can listen when I want to listen, then immediately resume reading the regular way (unlike an audio book, which is only listening)
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