Where Is Publishing Headed?

With the big publishing houses losing more and more money, while companies like Amazon gain a greater share of book revenue, what lies in the cards for publishing as a business?

Having just published my own first novel THE RECKONING as a POD through BookSurge, I found the comments made in response to this New York Times Magazine article every bit as interesting as the article itself.

My own take: Big publishers are going to have to embrace, at the very least, the concept of offering their books in POD form, so as not to lose so much money on returned merchandise...and they're going to have to rein in the kinds of advances they've been offering. I wonder if somehow Authors will begin to be offered in a kind of draft lottery (as in the NBA and NFL), so as to be able to control the auction-style bidding wars between publishing houses? Something to think about.