It would open the market for competing ebook sellers to advertise their books as "Ad-Free, not like Amazon!" Right now, some of them say "no DRM!" or "ePub format!" However, the general public is oblivious to DRM, and only knows that multiple filetypes are confusing; they don't recognize those as useful features.
But they know ads, and don't like them. Ebook readers --casual ebook readers, not the swarm of fanatics we have here-- will be receptive to a message of "our books don't have ads" in ways they're not open to the message "our books are well-programmed & don't have weird software attachments."
Amazon could be shooting themselves in the foot, here.
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