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This transition in purchasing habits makes sense to me--I tend to use my Kindle to grab a lot of the books previously published by an author that I discover and enjoy. It's great having 12 books by the same author all in a folder on my device and not taking up a whole shelf in my office.
My guess is that the increased sales in the backlist are not reducing sales of the frontlist--overall readership seems to be increasing, though I have no articles to back that up, just my own experience and that of other ereader owners that I know. We're all reading more than we were before.
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