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Rakuten + Walmart are going to have to provide some value add in order to give people a compelling reason to buy a Kobo device. Maybe partnering with Indie authors through Smashwords and Scribd to create a service like Kindle Unlimited. Or hype up the ability to read for free via Project Gutenberg and local libraries.
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They'll probably use Kobo's "Writing Life" service as self-pub - or to direct new Walmart authors there as a way to get their books in Walmart. Maybe they'll set special terms for exclusivity...etc.
I wonder if this also lead to Walmart selling/working with Kobo Audiobooks - since the digital audiobook market seems to be the significant growth opportunity for digital ATM.