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As an author, the new abundance has been great. Under the old publisher-controlled system I sold zero books and made zero royalties; the high barriers to admittance into the system kept me out. Now I sell eBooks, not enough to make a living, but enough to add an extra layer of reward to my hobby. All of my books are <$3 and several are free.
I would agree with the idea that abundance would eventually lead to reductions in content, if I believed that most authors write with an intention to have it be their sole career. I don't think that's ever been true save for a small minority. The trend could undermine some "big names" but I think there's more than enough amateurs to make up the slack.
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