So where's the money going?
When Elsevier reported 36% profit margins in 2010 according to Wikipedia[3], I have trouble believing that publishers are being squeezed too much. At least not Elsevier and other mega-publishers. I can't easily find googlable historical Elsevier reported profit margins, but I would be shocked if they have actually gone down rather than up over the past 10-15 years.
For comparison, it looks like traditional major book publishers have profit margins of around 10%. [4]
Wikipedia states and cites << [Elsevier] also claimed that its profit margins are "simply a consequence of the firm's efficient operation" >>
It doesn't sound like decreasing margins to me, and it doesn't seem that way to the universities paying for these margins, who can't afford it.
[1] http://www.marywaltham.com/Journal_pricing_change_Oct08.pdf
[2] http://www.library.illinois.edu/scholcomm/journalcosts.html
[3] https://en.wikipedia.org/wiki/Elsevier
[4] http://www.digitalbookworld.com/2014/how-much-money-the-bigg...
This is purely a problem of legacy. If you launch a new OA journal there isn't the same print expectation. And granted, it's a problem that will go away eventually. But I continue to be surprised that we can't simply stop doing all printing of journals.