To be fair, I think it's both. They're over pricing pay per view content, which drives people to subscription services. The problem is that subscription services are filled with low quality content. They need to stop being tricky and just sell this stuff for what it's actually worth. Paying $4 to watch a single movie one time is absurd when you pay $10 to watch unlimited content in a month. Pricing is very out of proportion too.
Well, you get the crappy channel subsidized with adverts, otherwise it would either be too pricey or server just utter cheap worthless unwatchable trash (mostly).
Would you like to pay say 1 dollar per movie and watch significant amount of ads during it?