My understanding is the Kobo has its own flavor of DRM for ePUB contained within the sqlite Db. In that way, it is like iBook or Nook, which also run versions of DRM ePUB unique unto themselves. The difference is that books purchased from Kobo, unlike Nook or iBook or Amazon, can be downloaded and used on other devices as ePUB with ADE, or, in some instances, ePUB with no DRM at all. They can be run that way on Kobo, or on other ePUB friendly devices.
I bought the original Kobo back in May for $149 because it was $100 cheaper than the competition in ePUB readers (still true with the newest reader vs Sony 6") and because it seemed like a good choice for reading fiction. It still meets all of my needs.
I'd like a dictionary. I'd like higher contrast. I might even like WiFi. That being said, none of those features go to the heart of why I bought my first Kobo. And if I decide to buy the new one, then I do so knowing that the discount on books I have bought and enjoyed in the time since my first purchase have more than paid for the cost of the device.
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