Netflix. Say you liked two genres, action and space. Why would you pay for NF is that has to include every other genre that you dont like?
Probably because they've priced their offering low enough that it doesn't hurt to do so. I'm quite happy to pay that amount for the proportion of content that is appealing to me. I wasn't prepared to do the same with Sky at $73 for the basic package with HD ticket and box rental. It got to the point where the content they were offering me was not worth the fee they were charging me for it.
This is the point. It's not about how many channels are in the package or average cost per channel, but what it actually costs me to watch what I want. If Sky unlimited was available for $30 and I only watched 1% of it I would probably still consider it a bargain. I wouldn't care that there was another 99% that didn't interest me. I think most people feel in their gut that Sky is expensive and is charging more than it needs to. Whether that is true or not, it is how many perceive it and perception is everything.