I'm not in entire agreement. Free can be inconvenient, which it is. People will pay for convenience and an attractive interface. Think of the Starr Report as an example; you could download it for free from a government website, but people still paid to buy it in convenient book form.
It's an issue of knowing what business you're in. Music and moviemakers have existed in a scarcity market for decades, and it's very hard for them to realize that they're now in a convenience/trust market.
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