Time.com reports e-books are becoming incredibly profitable for several large book publishers. Quite simply, e-books are less expensive to produce compared to print books, and thus more profit can be made from their sale. Does this mean the prices of e-books from these big publishers will come down? Or will authors demand higher royalty rates from their e-books? Only time will tell.
The full article can be found here: http://business.time.com/2012/03/30/thanks-to-e-books-flat-revenue-is-no-problem-for-publishers/