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The competition between e-readers and tablets is fierce -- one of the latest battles launched in to is the fight between the Kindle Fire and Barnes & Noble’s Nook. New models continually appear, bolstered by tablet features intended to improve the user experience and make them more enticing than standard e-reader models.
All media players are hooked up to the Amazon cloud -- anything you've ever bought is available for instant streaming, so there is little need to download anything if you don't want to.
The Kindle Fire's space capacity is nearly 7 gigs - allowing you a fair amount of room for a few movies, plenty of photos and about 1000 songs.
The tablet boosts the bookstore, a music and video store (with a Netflix-like subscription video library), and the ability to stream music from their servers. Another boost to the Kindle Fire is their Android App store, which reaches out to all Android devices and is a more attractive target for developers than some competing devices.