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Publishers are going to have to get over the idea that "higher price = more valuable product," because a lot of readers aren't accepting that anymore.
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Spot on!
I see us moving into an environment were the gatekeeping function of Publishing will by far be the most valuable service they provide. Unfortunately for them, that is also a task that can be performed by Blogs, Agents, and a myriad of other social networking tools that are probably in their infancy.
I foresee that by the end of 2011 we are going to be in an environment where if you want to charge $12.99 for your eBook, you'd better make sure your eBook is infinitely better than the tons of material out there at 25% of that price or you are going to find your readers leaving in droves.