Right now, there are very high depreciation rates because the format and the equipment are brand new. The first couple of years of the depreciation cycle are going to be the highest. If a plant is running at a 60 percent capacity, the facility is very poorly utilized, so cost per disc is going to be higher. Typically, overhead costs are a fixed number. DVD costs are also higher than CD because of lower yields and lower unit orders as a whole.
Royalties represent a very high percentage of the final cost as well.
Of course, where there is service, there is a price to pay. Several kinds of clients, monthly publications, for example, only need short runs. The client base may be small, but their subscription revenue is very high. Needless to say, replicators prefer long runs because they are easier and more profitable. But since most plants are at capacity only three months of the year, some manufacturers look more kindly at minimum orders.