Actually, it costs about 6.50$ to ship a thicker sized DVD and 4$ for the thin ones. Then there is the envelope, the label, the time it takes to process and ship the order.
T-shirts are about the same depending on the sizes.
We are currently trying to implement a shipping module which will calculate exact shipping costs, but until then you'll have to deal with this. We actually LOSE money on shipping in the long-run, but try and find a good average to keep the customer happy. If you don't like the price, don't buy it it's pretty simple!
As for am companies, they don't have to buy the DVD from the distributor like we do.
For example, we buy the DVD for 10$, and get charged 5$ shipping per DVD. That's 15$ per DVD, and if you notice we were selling most DVD's at that price and are selling them at even lower now. We actually lost approximately 5$ per am movie we sold, which was bad business but we wanted to help support the smaller companies and keep our members happy!
Now, if an am company can get their DVD for 5$, they save 10$ right there which in turn they can pass on to you guys. Also, they don't care about making money but want to get their product out, while we need profit in order to reinvest in items for the store to keep the customers happy and coming back for more.
Just because other companies are offering cheaper shipping, it doesn't mean our shipping costs are "wrong"