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I agree that it's money that's really slowing device purchases down. Look at the current situation: First you pay for the reader, then you pay for the books (often at higher prices than the paper versions). For most people it doesn't make sense.
If they can provide readers at around $100 which can read most forms of books and also provide content at around $5-6 for a novel then things may start to take off. But as long as the readers run around $3-400 there's not much hope.
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