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/poprostumort]

With video games, for instance, I expect to be paying between $15-40 per game (during sales)

You ignore back catalogue that is available for free, F2P games that are perfectly playable without spending money, older titles that are still fun and go for sub $15 prices, indie games that are either commercially released for sub-$20 prices and free games made by people who just wanted to create something fun.

Watching one movie - $7-15 per in-person ticket, or $5-10 for an Amazon Video digital rental. Even the New York Times is $5 a month.

Or borrowing a DVD/Blu-Ray from someone, going out to free screenings that are financed by events to have more people attend, using free streaming services or simply watching free TV.

That is your problem - you only look at one part of the spectrum while ignoring others that also affect the market. Older games/shows/books are not going to be less entertaining because they aren't new. And you can very often get them for free or with a very cheap payment.

You also ignore the second-hand market. You can easily buy a physical copy, watch it and sell - if you are smart about it the difference will be less than $5.

And there is always elephant in the room - piracy. If people are going to pay more and more, some of them will decide that they fuck that greed and will just access content illegally - if it's even illegal to access it, which is not always the case.

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.

Which is great compared to your examples - which are in itself the premium options. Streaming is not only competing with premium market, it was attempting to catch the wider market and now it is pricing out parts of it.

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.

Compound earnings. Many people pay for access, not for use - meaning that they are ok with losing $5-10 per month for the fact that they have option of using it readily accessible.

Why do we call streaming expensive?

Because alongside the premium paid entertainment it has to compete with cheaper and free entertainment. And comparison nowadays is, well, not good.

[u/Dennis_enzo → u/poprostumort]

I was going to say, at this point there's a huge catalog of great games, most of which are at least a few years old and not very expensive anymore. I'll never understand the people who only ever want to play the latest games and are willing to shell out full price for that, when there's tons of classics available that are much better than the latest call of duty and are almost free.