First off, in this case, the cost is just under $200/hr of footage.
You have to pay someone to retrieve the data and burn it to DVDs. NYPD has roughly 30,000 cops, so it's likely not entirely trivial to track down the correct video. Someone will have to review each hour of the requested footage to ensure that it includes nothing that would violate the privacy or safety of anyone involved in the video. If there's a lot of requests, you'll probably have to hire someone to do this job full time. Otherwise, you're taking a cop away from more useful work.
I cannot tell you whether $200/hr of footage is fair but I would not be the least bit surprised if it barely covers the costs incurred by the NYPD.
For what it's worth, and before you ask, there are definitely privacy and safety issues associated with body cam video. Imagine for a moment the home of one of your local TV anchors (say, the cute chick) is robbed. Police respond to her home, review the scene, take her statement, etc. Video from the police cruiser cam might be useful for a stalker to figure out where she lives. If you've any imagination at all, you can easily come up with other scenarios.
Combine carrot and stick so that the carrot corresponds to the pain points caused by the stick.
"It takes all sorts of in & out-door schooling to get adapted to my kind of fooling" - R. Frost