[jollybean]

First - that is 'huge margin' far beyond their other offerings, but on fountain soda it's much greater.

Theatres make 0% margin on the Ticket and probably 90% on the soda and popocorn.

The analogy is reasonable: 'The Food' , 'The Film' or 'The EC2's are the primary ticket item and it's ballpark competitive on a cost basis.

AWS is not competing to be the cheap, low-margin host for YourFreeImageSite.Com and so their prices are going to be different on that point.