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I have no doubt that DRM plays a big part, but I also have no doubt that maintaining a 2-format infrastructure and conversion/submission/delivery pipeline carries a pricetag that is not small. The demise of the mobi format was always going to happen regardless of DRM. Devices that can only use mobi were always going to get the axe some time. I'm actually surprised they stayed with it/them for as long as they have.
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