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I also don't use KDP but have had free titles on Amazon through price-matches to other sites. I can say that overall, at least for me, free downloads are way down from what they were a year ago. In 2011 my two free titles were averaging almost a thousand downloads a month, with over 4k in the month they were first offered. Since July my free downloads are well under 100/month on average, and a third book I added in June only managed 264 downloads in its first full month. I'd say it's due to higher competition.
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