Traditional publishers are desperately trying to maintain their high margins. Not only does that mean they will allow books to go out of print rather than convert them to print-on-demand (how is that good for authors?), but it also means they will price ebooks ridiculously high relative to their costs so as to not damage their margins in dead-tree versions. For authors: bad all around!
“Publishers probably need to sharpen their pencils and re-do their math. Although it is true that delivering a POD book is a great sacrifice of margin for a publisher compared to one from their own warehouse, it is both not as great a sacrifice as they think and, really, no sacrifice at all if a sale that would otherwise be lost is captured. Lower print unit costs for pressruns can be misleading if the publisher doesn’t consider the costs of multiple handlings, delivery, returns, and books printed but never used.”Read the entire article.