Netflix is approaching 100 million subscribers; looking at it that way they find him $0.20/subscriber funny. That might not be an unreasonable amount if his shows get a lot of views.
I do think that video streaming has a problem of being very fragmented. If you subscribe to a music streaming service, chances of finding a particular album you're looking for on there are pretty high. If you subscribe to a video streaming service, you get access to more video than you could ever watch, but the chances of finding a particular show you're looking for are rather small, as many of the high profile shows are exclusive to different services.
Obviously some video series are more costly to make than a music album, so it may not be reasonable to expect to get access to nearly everything for $10/month. But then I'd prefer to pay per show rather than pay for a package that I'm only going to watch one or two shows of. And for a price that matches the fact that you're renting the video, not buying it, since - as you point out - you don't actually own it.