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Music industry still have the problem of geo-restriction. This promotes piracy in countries not covered by Amazon, for example.
I have not found any geo-restriction with Amazon (USA). However, some stores like B&N don't sell to people outside the USA.
And we have the market of non-English books. For books in Spanish, booksellers are just beginning to sell e-books and they are setting high prices. So, it's not surprising that piracy is flourishing.
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