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You can break up a music album into single titles and charge 99 Cents for each title. Many people will only search for single titles and 99 Cents is such a small amount that convenience trumps price.
However, you can't do the same with a novel. You can't sell the book in single chapter for 99Cents each and have a marketable product. How low would the price have to be to keep people away from piracy?
I also fail to see what attractive "additional services" the publisher could offer. The attraction of the book tends to be the written word.
Not every author can be a Rowling who would earn shedloads of money via merchandising stuff even if she handed out her books for free.
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