Distributing virtual goods versus physical goods

Here's the problem with the sea-change to virtual goods over the Internet. The producers want to keep the savings of creating and distributing virtual goods versus physical goods. Consumers want that savings - they expect lower prices, close to free. What is going to virtual goods? Anything that can be transferred in bits:

• audio,
• music,
• video,
• tv shows,
• movies,
• books,
• magazines,
• newspapers,
• software,
• games,
• communication,
• reference,
• research,
• art,
• meetings,
• computer help,
• mapping, etc.

Most of these items are content (the what), but there are also a couple of “hows”. I think we will see more in the future.