You are correct - right now that 5% is miniscule compared to costs of printing. MY contention is that there may be hidden costs and things we haven't even thought about that drive towards those rumored prices. What about legacy conversions for instance?
I don't have all the facts yet.
Naturally, there will be costs which we (and probably nobody else) haven't yet considered. As to what they will be - who knows, we'll have to wait and see!
Absolutely - it might be the situation we have now with music: cheap with DRM or premium price for quality/no DRM.
Indeed, though I suspect it may be a three-tier setup - basic with DRM, basic with no DRM, premium with no DRM.
True - the lossy 256kbps on iTunes vs. lossless audio is the same for all these digital mediums. We pay for different formats with different fidelity for the same content. Will this fidelity factor in the same way as with books as it does music/video? I'm not certain.
However, I think Apple can quell alot of people if they offer two versions right out of the gate, instead of waiting like they did with iTunes music.
No doubt it can't be a straight comparison, it's definitely different - largely because a user simply cannot convert the physical option (the book) to the digital one in the same way that they can with a CD. Additionally, people
like books, unlike a CD you actually spend your whole time using a book holding the thing, if you see what I mean.
We must also remember that whereas with music, carrying around a lot in your pocket is a big advantage, with books the whole model is different. People don't dip in and out of books, or make 'readlists' out of different chapters from different books, they generally read one then move onto the next.
Hopefully Apple have learned from their one-format-and-that's-it mistake of the past, and will give us at least two options from the get-go.