It's surely competitive with physical books, including the cost of storing and handling them, otherwise libraries wouldn't buy them. A random on the internet says about library books: "Very popular hardcover books have a lifespan of around 20 circulations, which is around a year or less, depending on how well bound they are and how well the patrons treat them." Other books are regularly thrown away because they're not popular enough. So I presume publishers account for the short life of a library book in their pricing, and if they actually lasted forever, they'd cost more.