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That pioneer of self publishing, J.A. Konrath has a lot to say on SP on his blog. I think traditional publishing has to evolve for sure in the same way that music adapted to iTunes...the movie business is undergoing a change with the advent of super fast broadband and offerings like Netflix.
I am not sure that trad publishing will die entirely...it will have its place. All said and done, trad publishing still dominate the best seller lists.
How trad publishing will evolve is something I have no clue about.
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