[markbot]

Assuming people don't pirate the digital books as they do in emerging markets, I think the publishers and writers are underestimating the secondary market effects. Digital books greatly reduce the size of the secondary market.....thus this allows the publishers to make more money.

the secondary market is a key difference between music and books that i think is lost on the publishers.

for example...college text books. the digital version can't be resold 4 different times. instead of making only $100 the first time it is sold at retail.....perhaps they sell this book at $50 to all 5 people...thus netting $250.