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All of the points everyone has raised are valid. Unfortunately, everyone seems to have missed the point of my original post (or maybe it got lost in my waffling).
The point is that, with electronic products, the vendor (be it bookseller, music retailer etc) usually does not own the product that they are retailing, thus they are effectively acting as the agent for the publisher (recording label, etc). This makes selling electronic a very different situation to selling a physical product where the vendor actually owns the product and can therefore set the price as they wish and sell to whomever they like.
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