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People tend to get books from the library because they want to read those books. The only way $0.99 ebooks will reduce the need for library loans is if they make the same books people would otherwise borrow available at $0.99.
I don't care how many books are available elsewhere for $0.99 - none of those other books is going to slake my desire to read the next Honor Harrington book when it comes out.
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