tdgeek:freitasm: No, it shouldn't be (but again who knows) as much as the actual packaging and transport costs. But it wasn't listed in your previous post "Cost should be the artists margin and music company margin, so they are no worse off, the reduced costs will be those physical costs you just mentioned."
It should not be ignored, however low it is.
Very fair point, point taken.
you might be interested in this articel about ebooks which probably shares some parralels with iTunes in terms of content delivery costs
"Of course, that $9.99 price [for an ebook] doesn't include any actual printed material, and incurs minimal delivery costs. But Hyatt argued against that view. "Some people assume that these two items represent the bulk of a book's costs. They don't. Together, they account for about 12% of a physical book's retail price. So eliminating these costs doesn't do much to reduce the overall cost structure."
"According to Levine, the cost for publishers to print and distribute a hardcover book adds up to a mere $3.50 per copy. "
wouldn't be surprised if a similar cost structure existed for music. For an Album, when you think of the cost of a physical CD, it is a few cents. add in the cost of distribution of maybe a $50c per CD, and retail store commission of a couple of bucks, and of course there is also the commision that iTunes gets that offsets that. the total pysical cost for an album is probably only a few bucks. On a $25+ retail price that doesn;t really allow for much discounting if you use a different medium (which of course also incurs it's own costs too)