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Paranormal romance is huge. It's not that the traditional publishers are ignoring it, it's that their business model isn't able to keep up with demand.
As mentioned, for at least the last 4-5 years paranormal romance has dwarfed pretty much every other genre. In fact we're in such a post-boom state that only Lost Girl and True Blood seem to have survived the TV cash-ins that were all the rage a few seasons back.
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