The Telegraph is saying what many people have already been thinking, that publishers are screwed. eBooks are extremely easy to find online and there is little deterrent for pirates. Now, publishers could go the unpopular RIAA route and sue people to ensure their inflated prices can remain, or they could lower eBook prices to reflect the real demand curve. I hope publishers do the latter.
Remember, the marginal cost of ebooks is 0. There is only the initial capital invested in the author that should be factored into the ebook price. People know this. That’s why we think it’s insane that an ebook should cost the same as a hardcover. Publishers need to realize this.