Even though editorial, typesetting, and publicity costs may be comparable between ebooks and physical books, the ebook medium overcomes the problem of inventory costs, which, I understand from author friends are substantial. Many books go out of print every year because, although there are still willing buyers, the cost of producing lower volumes and keeping warehouses stocked outweighs the benefits in the traditional book publishing model.
I'm also surprised the author of this piece implies (?) the cost of setting up and maintaining a physical press is basically zero. Swish offices on 6th Ave would possibly also be less necessary in an ebook-dominated world where there is a more direct line between authors and their readers (customers).
So, for a mass-market hardback book, printing costs represent about 10% of the list price, less than just about any other component. Certainly, eliminating the printing costs alone would not knock a dramatic amount off of the consumer price of the book, assuming, that is, that book pricing is based on a "cost-plus" model, which it clearly is not.
I'm also surprised the author of this piece implies (?) the cost of setting up and maintaining a physical press is basically zero. Swish offices on 6th Ave would possibly also be less necessary in an ebook-dominated world where there is a more direct line between authors and their readers (customers).