I hope it's not true very often that Amazon would pay the full buying price every time somebody borrows an ebook from them. Considering that even for free, it would be certain to drive in new sales, I think that sort of thinking would be stupid-greedy for the publisher.
I mean really stupid. I've been selling online content for 15 years, very successfully, and I use almost no money on advertising, all the traffic comes from free samples and word of mouth. And the biggest boys in the biz are also those which give away the most free content, that is probably not coincidental.
It's been proven so many times. Ten years ago, Seth Godin gave away the full book in PDF for free, of The Ideavirus. And many, many people downloaded it, started reading it, maybe even finished it, and then bought the paperback.
And a very successful thriller writer made a podcast out of his book Jack Wakes Up, and when he started selling the ebook, it was an immediate hit.
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