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There are relatively few books that I haven't bought because of agency pricing model. I will not buy an e-book that is priced above the paperback price. Since starting to read e-books, I have found that I prefer them to both paperback and hardback books. This was unexpected as I have always loved books. I tended to buy more hardbacks or trade paperbacks because of my aging eyes - they were easier to read. I still buy the occasional hardback or trade paperback when they are not available in ebook form or if it is something I want to keep on the shelf. I also continue to give them as gifts.
I've seen a lot of discussion on this forum regarding the relative costs of e-book production. While I'm am not an expert, I do believe the production costs have to be lower than both paper based products - no paper, very low distribution cost, no excess inventory, real estate, and printing presses.
Recently the NY Times has included e-book sales along with the other best seller categories. Publishers take note. There is gold to be made in the e-book market!
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