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Seconding Ann.

Amazon doesn't have to adapt as long as they have the dominant platform and app. That's just not how the web has worked with any format adoption historically. And also as mentioned, I agree with the belief that readers don't care about formats as long as they can read what books they want on the device they have.

Another possibility would be if Amazon opens up the Kindle enough to allow third party programmers to create versions of different reading software and read different formats, similar to what is happening in the Apple store. You can get apps to read ebooks in a bunch of different formats on the iPad/iPod Touch/iPhone. If Amazon wants to turn the Kindle into something other than an e-reader (compete with Apple's devices for example), this would be the way to go but it would mean competition for their Kindle app just like the iPad has competition for iTunes/iBooks on that device.
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