'Publishing houses actually make a loss on most of the books that they publish, that explains the 85/15'
That's probably because they unfortunately publish too much rubbish. Standards have fallen. I've read too many novel that have mistakes and that's not the worst thing. Too many are boring with limp characters.
With all the books and rules about writing, they should be scrupulous about ensuring that every book they publish is excellent.
Great! It's about time the big publishers get their respective hats handed to them. I have published books with a "big" publisher in the past and now with Amazon and I've made much more $$$$ with Amazon then with a conventional publisher - and a lot less heartaches.
Amazon has revolutionized the publishing industry and for the better. Many new and very talented writers are getting a chance to publish whereas in the past, unless they got very very lucky and picked up a good agent, they didn't have a snow balls chance in hell of getting published. Thanks Amazon.