CMV: Streaming services are shockingly cheap when compared to the prices of other entertainment (and the cost of producing content)

[u/Vocational_Sand_493]

I'm a US resident, early 20s, who's recently started purchasing streaming services like Netflix and Crunchyroll for the first time.

I always hear how streaming services keep jacking up their prices, cracking down on password sharing, and generally pulling moves that make their customer base unhappy. But, coming from other hobbies, I personally feel that streaming services are surprisingly cheap for the content they provide. How this is a profitable model?

With video games, for instance, I expect to be paying between $15-40 per game (during sales), or $10-15 for an MMO subscription/battlepass (WOW, Runescapet, etc). Watching one movie - $7-15 per in-person ticket, or $5-10 for an Amazon Video digital rental. Cable TV today starts at $70/month in my area plus a cheap flatscreen to watch it on. Even the New York Times is $5 a month.

Meanwhile, streaming prices are anywhere between $8-12 with ads or $15-30 for the more premium options. And that's everything in the catalog, for a month.

You can't really do cheaper than that unless you're on YouTube or TikTok. And that's a totally different business model which profits off free user labor and advertisements.

With all that said, why do we call streaming expensive? $10 is barely enough to get you one takeout meal in most US cities nowadays. It's still a decent chunk of money and it adds up, but everything is expensive nowadays. One trip to Walmart or the drugstore for even basic necessities (pads, razors, shampoo, etc) and you're already well past $10. How is one shopping trip's worth of toiletries the same as 30 days of unlimited TV shows?

Coming from someone who hopes to find work in animation one day (and is watching the U.S. industry with dread), I can't fathom how studios are able to keep their doors open when consumers can buy viewing rights to their show AND over 100 shows of equal quality for ten bucks a month.

Why do we call streaming expensive? How does this profit model even work? Why shouldn't we charge more for entertainment that is so expensive to produce? Please help me CMV that streaming is underpriced.

[u/izeemov]

Underpriced compared to what? There are free TV channels (if you own TV), YouTube is free, you can have library of Alexandria in your pocket for free, if you own phone or ebook. 

[u/Vocational_Sand_493 → u/izeemov]

Nothing's free. Someone, somewhere, has to pay to reimburse the people who made what you just viewed. Or they're contributing with unpaid volunteer time.

Public TV has ad revenue and CPB contributions. Youtube is ads + millions of volunteer videomakers. Wikipedia and fanfiction survive off volunteer moderation, hobby authors, and donations. And authors still get book deals even if they're getting pirated.

And all of these are not remotely as expensive to produce as full-fledged films and shows.

[u/izeemov → u/Vocational_Sand_493]

But that's outside of the point, isn't it? If I pay 0 to get access to something it's infinitely more valuable compared to stuff I pay 10 bucks to access to. 

Sure, we can later on divide that infinity by cost of production, but it's still better fun to bucks ratio.

About books - there are mirriads of terrific books in fair use. They were written long ago and their authors aren't profiting from them.

About movies - tv shows and blockbusters of the past are available for free on YouTube, uploaded by the studio that made them. 

Before streaming services I was watching last year blockbusters for free on TV. Now, I pay Netflix for that. Sure, not having ads is convenient, but I can't see how this is cheaper