"Netflix has set the price for large quantity of video content way too low." What makes you think $8-10/month is way too low? Let's do a few back of the envelo

"Netflix has set the price for large quantity of video content way too low." What makes you think $8-10/month is way too low? Let's do a few back of the envelope calculations: Globally there is an easy 500 million user market for high quality US TV content. If we take off a 30% cut for Netflix then that is $2.8-$3.5 billion per month for the content providers. A high quality show like house of cards, or the wire, or daredevil, or game of thrones costs around $150 million. Let's say studios want $300 million to make a decent profit. So there's enough money through this kind of service for 10 high quality seasons of content per month. This would very quickly build up a large high quality backlog for most people. Of course content providers would rather pump out lots of low quality crap, and spend big money on advertising average shows rather than spending that money on the content.