Now away from theory and on to reality.
It's hard to compete with free!
This is the WHOLE reason MP3s took off, and why the Internet is rife with movie downloads as well. I find it hard to resist downloading stuff I haven't paid for, even ebooks.
I saw the mention of "slippery slope" earlier in the thread, and I think this one is like a well-greased slide propped at 90%. If people can get stuff for free, rather than pay, it's VERY DIFFICULT to pay. Especially when there's very little value-added by paying -- and as MP3s prove, removing LOTS of value (diminished sound quality), free still wins.
The reason e-book downloads haven't taken off is that it SUCKS reading on a computer screen. Now with the advent of e-Ink, we will start to see more and more "book piracy" than before... assuming people adopt the technology.
-Pie
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