Costs of books vs eBooks
NYT's Motoko Rich breaks down the costs and profits associated with creating and distributing eBooks vs. regular books.
If I'm reading it right, for each hardcover sold, publishers are left with revenue of $4.05 before overhead. For an eBook, they end up with "$4.56 to $5.54, before paying overhead costs or writing off unearned advances." Hence their reluctance to continue with the $9.99 pricing so favored by Amazon.
Related: Did you see that author Douglas Preston got into all kinds of trouble with his fans for suggesting they had a "sense of entitlement" for wanting cheap eBooks? He eventually apologized and reframed his comments after an outcry. --adm