The Kindle is a really great product. Amazon is really the only company who will succeed in this area because the have the content. They, like Apple get it. Their bread and butter is content and the device will encourage content sales where as Apple sells content to encourage hardware sales.
The biggest problem for us is the publishing industries archaic systems. A book in one country will be published by another company in another country. Amazon had to make deals with all the US publishers and will have to start from scratch in Canada and again in the UK and so on even though the content is the same.
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