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I really think this sort of thing stinks.
Books have already gone to a blockbuster model, where big name authors make 90% of the sales (stats made completely up, but it's very lopsided).
About the only way indie authors could compete was by pricing their stuff low.
But this seems to me as a way for the blockbuster model to completely wipe out indies, by competing at the same price point. I mean, why give Joe Blow a try for $1-3 when that same price buys a short story from a massively hyped and advertised author?
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