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@AngryD: The problem with your argument, is that there are already people doing exactly what you say will not work. There are a plenty of sites out there that are publishing stories one chapter at a time. And some of these are for very long running stories. Some are free, some charge a membership fee, and I believe some charge by the chapter in some mechanism.
The quality is there. Or at least the mix of qualities is no different than the mix of quality of more traditionally published ebooks. So dismissing them a "BLOGGERS" is a disservice. Many are well planned with the authors writing chapters well ahead of time to make ensure they have continuity in the story and help them with the frequency of publishing. Sure, some are off-the-cuff things that should never see the light of day. But, that's the same with plenty of more traditionally published books.
Serial fiction has been around for a long time in different forms. This is just another version. whether if works or fails is more to do with how Amazon handles it. That includes how they charge for it, and pay the authors. And how good the stories published through it are.
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