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Well Amazon is already subsidizing the price of its eBooks and the reader to push for market share, why would they further increase their losses by giving a subsidy on the price of ebooks with ads? They may work it in slowly but I think they believe this will be a viable alternative for their already "low" prices for ebooks. They need to figure out a way to get margins for eBooks up and adding Ad revenues on top of what the consumer pays is the best way to do it from a business stand point. Theres a risk that people will revolt but it depends on how blatantly the ads are placed in the books.
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