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Like a few others, I dont buy hard cover books, and I rarely get the paperbacks either unless it is something that I know I'll like and will read again. Most (60%) of my books come from the library, so waiting to read a title is not too unreasonable for me - 4 months though is a bit long.
I don't have an eReader yet (soon, very soon) but I can see my purchasing habits changing to doing more purchasing and less borrowing, if for no other reason than the convenience of being able to do it while sitting on my couch.
I think this is bad call on their part it might increase hardcover and paperback sales a small amount. At the same time it will almost certainly decrease the eBook sales.
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