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Back when I was a kid, ALL my comic books had ads in them. Ads have always been in magazines-even high-toned literary journals like Harper's and the New York Review of Books. Ads were in the SF digest mags when I was coming up. Heck, a few paperbacks had ads in the back. Putting ads in books would not be the horrifying, unprecedented disaster that people seem to think.
I think a likely option may be the freemium option, a la games, apps, and streaming music services. You download an ebook for free. There is a banner ad across the bottom. You start reading. Like the book but don't like the banner ad? Upgrade to the "premium" version by paying full price. If you can stand the banner ads, read the book free.
Hey, it may not be for everyone, but if it works for games, why not for ebooks?
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