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Downloads of ebook definitely kill paper back sales and I cannot think why it would not - is the whole point of inventing "ebook" to replace casual paperbacks and save trees? I dont think the fact that it's free would hurt that much, as a matter of fact, a free sampler would encourage people to know the author and the book better. But electronic versions would definitely cut phsyical sales. iTunes does kill CD sales at Walmarts even though the downloads are not free (and if you are getting all the songs in the album, you may even be paying more than the CD price tag and for a lower quality format.) Would people still buy CDs after they purchased downloads from iTunes? Obviously some audiophilers still may, but I doubt most peopel would do that. I guess it's same for the books.
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