What most people don't realize, is that the "physical" cost of a book isn't a particularly significant portion of its cost at low volumes, and very little of its risk (You can do multiple printings should a book do better than expected)<p>The author here:
 <a href="http://www.tobiasbuckell.com/2010/01/31/why-my-books-are-no-longer-for-sale-via-amazon/" rel="nofollow">http://www.tobiasbuckell.com/2010/01/31/why-my-books-are-no-...</a><p>Did a great job of capturing many of the costs of publishing a book - Author's Advance, editor, copy-editor, proof reader, typography, design, art, Marketing/Advertising -  regardless of whether it is physical or electronic.<p>I've only ever been on the periphery, as a technical editor - but I can tell you, watching the birth of even _one_ book, is a painful, extensive, and incredibly expensive process involving a ton of highly qualified professionals.  The actual "physical" production of the book is almost an after-thought.  And, every author I know in the technical industry, has always had to have a "real job" in order to make a living.<p>So, no - I don't actually think there really is much difference between the cost of a physical book and an eBook for normal volumes &#60; 10,000 copies, which is considered a good success for most authors - the fixed costs are pretty significant.<p>I do agree with you, though, that there are a lot of liabilities associated with DRM encumbered eBooks, that hopefully publishers will drop, and therefore _enhance_ the value of eBooks.  I certainly am willing to pay more for a non-drm encumbered eBook than it's paper equivalent.  With the number of Ebook readers I have (iPhone, K1, K2) - they simply are more valuabe.