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Originally Posted by unboggling
Regarding the comparison of paper hardcover/paperback vs ebook ARC/final, it works as relates to price and timing. But hardcovers are a final product. ARCs aren't.
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The timing
is different; I think people often miss that when making the comparison. ARC->finished book is "a few months"; hardback->paperback is most often about a year.
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Also, I vaguely remember seeing some ARC and other pre-press (pre-proof?) copies of paper books years ago when I worked in a bookstore.
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The origin story is that Baen noticed a secondary market in paper ARCs - advance copies for reviews, etc. - being recirculated and snapped up by impatient fans. So they decided to make them available to a wider audience. I think they left the "and we'd like to actually make money from it" part as an exercise for the reader

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