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I've heard this kind of thing given as one reason why publishers are reluctant to release back-list books as ebooks - because each new release is on competition not only with every other new release, but with all the books previously released. The number of readers seems to be static, so the more back-list books there are available, the more competition for any future release. (I've also heard this as a reason why the Big 6 hate indy books - because there's that much more competition, and most indy books are more reasonably priced.)
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