People, you are making this issue more complicated than it needs to be.
People pirate because they don't feel a personal connection with the artist who produced the content.
You need to create incentives for consumers to reward artistic expression that gave them pleasure. Right now, it's practically impossible for consumers to feel this connection. With music that is especially true; the companies are humongous.
Have you ever noticed that piracy occurs on mass-marketed works and not on smaller labels or publishers? As an individual I worry less about piracy for financial reasons than the possibility that others might make defective copies or claim credit for writing it. Attribution for me is the most important thing.
Consumers will gladly pay if 1)they know the creator is receiving a substantial percentage of the profits and 2)their works made them happier in some way and 3)if consumers know that a payment/donation would increase the probability that more works will be produced.
When you buy a CD or some Itunes, you are paying for a virtual product. That is an exercise in capitalism. When you give money to the musician after downloading a song, you are expressing what moves you. You are letting the artist know that you as an individual have found the song to be valuable. That is an exercise in appreciation (and that is why this kind of tipping might be more viable
(read more:
http://www.idiotprogrammer.com/share...day/#casestudy )
The good thing about ebooks is you no longer have to factor in material costs and location and postage and stuff like that.