A UK Newspaper sells it's eVersion for around half the printed version.
I think it's important (and maybe instructive) to keep in mind that newspapers in Europe are generally (I don't know much about the UK specifically) much more expensive than newspapers in the US when it comes to subscriptions.
A Mon-Sat subscription to the Frankfurter Allegemeine costs 43 per month (~$56, if the exchange rate is relevant). A Mon-Sat subscription to the NY Times costs $15/month. (And I'm not in NY). A Mon-Sat subscription to my medium sized local paper costs $10/month.
Subscriptions to the European papers I'm familiar with save you 0-10% over the retail price (but you have the convenience of home delivery). Subscriptions to US papers always save you over 50% of the newsstand price.
So it may well be the case that substantial savings may be found for Euro papers that can't be found for US papers.
Re: costs of printing and distribution - I think that there are two ways in which P&D costs are being discussed here, and that they are being conflated. One way of talking about P&D costs is as a percentage of the newspaper's costs as a whole. This method doesn't consider the paper's revenue at all and simply sets the paper's costs at 100% and then determines what makes up these costs. This is where the 65-70% number comes from.
The second way of talking about costs is to consider the costs of P&D as a percentage of the overall revenue of the newspaper. This is where the 5-20% numbers come in.
The other difficulty in determining costs (and also in pricing eVersions) is that P&D scale massively (meaning that the marginal cost of printed papers becomes less and less). Printing and distributing a paper requires massive fixed costs (high-speed presses, buildings, trucks, labor generally), and some other costs (newsprint, ink). But if you increase circulation from, say 400,000 (the circ of my local paper) to 600,000, the cost per paper for P&D will drop dramatically because the fixed costs won't change - you won't (up to a point) have to buy new presses, new buildings, new trucks to print and distribute the additional papers (although you will have to buy more newsprint and ink). Similarly, if circ drops, the cost per paper goes up.
So calculating how much a newspaper can really save by e-distribution depends on a lot of issues (NPI). In many cases, the savings will not be great because e-distribution won't affect the massive fixed costs that are already present. Using e-distribution does not mean that the NY Times suddenly has no costs for printing or distribution. It only means that it has no costs for P&D of the eVersions themselves.
I.e., the NY Times has a print circulation of 1.6 million. If it adds 160,000 e-subscriptions, it still has to pay the P&D costs for the 1.6 million printed papers; its only savings are on the marginal costs of producing the 160,000 extra papers. As the marginal costs of increasing a print run by 10% are likely pretty small, this won't be a huge savings.