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I think they're missing the biggest thing here targeting the student market = buying back textbooks. Students at the end of the semester sell their books back to bookstores, which helps with the cost of them (or booze, whichever). When I was a student, they had a few books available as ebooks, but the price was only $5 or so less (for a $200+ textbook). I think a lot of students will pass on that.
Heh, if you think Amazon is bad, textbook companies are way way way worse
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