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A lot of the downloaders either cannot find a title they want legitimately (e.g. Harry Potter), or they are ratpacks, who in real life would not buy the title, and will likely never read it.
Look at the top downloaded title, Kama Sutra, and tell me if you really believe that the vast majority of "pirates" will ever read it. Or if they would have purchased it in real life.
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That's quite true. Majors, publishers. tends to say one download = one lost sale, that don't really work out.
Some have enough sense to pay the the music / movies / books they really like. Others are so used to get everything for free they won't think a second about buying. That's the real problem there.