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I'm fairly confident that Bezos' ultimate goal is to convince the publishers themselves that $10 is the 'right' price for bestsellers and new titles and that ultimately they will cover that price reduction themselves.
I actually agree with him on this; due to savings in manufacture and distribution, not to mention the restriction from reselling, electronic media should be heavily discounted compared to the physical alternative.
But good luck getting the publishers on board. Ultimately they view electronic distribution as a threat that makes them an increasingly irrelevant middleman between the creator and the consumer.
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