Originally Posted by xianfox
Actually, the cost to distribute each copy is not almost nil. Most publishers aren't handling this themselves. Why? The demand simply isn't there to bring on the necessary staff, additional equipment, and write the necessary software themselves.
Instead, they hire out a firm, like Lightning Source, who are charging fees to handle conversion and distribution that are in the same neighborhood as conventional printing and distribution per copy.
Then they're being ripped off by these firms.