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I suspect that subscription services appeal to people who don't re-read books, but do read a lot of books, i.e. the same people who frequent those used book stores where you can buy a book, read it and then sell it back at half what you paid for it. However, to be viable you need enough books that people want to read and enough new books. Otherwise, you start losing customers after they have read all the books they are interested in.
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