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There are things on the internet that you may find entertaining, but of course, that doesn't make the internet a part of the entertainment industry.
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The internet is undoubtably an entertainment medium. Sure it is used for communication, research, and finance as well but it is also host to countless videos, songs, games, porn, articles, stories, and other such things that are part of the entertainment industry. All of these can be had at the low low price of 9.95 a month.
As for internet poker it is a very cheap source of entertainment even for the 90% that lose. They could play on the play money tables or god forbid the .01/.02 tables and easily be entertained for pennies or less. Again poor choices are responsible for people losing hundreds at 100nl instead of losing 6 bucks playing penny games.
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If you'd like to prove my example wrong, the method is fairly straightforward: figure out the average American's yearly expenditure on transportation in 1907 and compare it to the average American's yearly expenditure on transportation today. As I've already indicated, it's more expensive today, and it isn't close.
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And you're a moron if you think this is a fair comparison. In 1907 your entire family would live in the same house or at the very least the same city. Only the wealthy could afford to take vacations. When your entire transportation budget consists of never leaving your neighborhood it's a good bet that you won't be spending much on it.
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Of course, you would probably respond by saying "yeah, but, well, my um TV has 9 gazillion channels now, and I can adjust the volume with the clapper, so obviously mine's "really" cheaper!!!11", and then I'd have to point out that being able to use the clapper =/= cheaper, and we'd go right back around again.
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Main Entry: 2cheap
Function: adjective
1 a : purchasable below the going price or the real value b : charging or obtainable at a low price <a good cheap hotel> <cheap tickets>
Note that the definition of cheap has to do with the value of goods/services.
http://www.tvhistory.tv/1940%20QF.htm
In 1940 a 12 inch black and white TV cost $400. A quick look at Amazon shows that a 13 inch color TV can be had for $150. Average salary in 1940 was $1900/yr. In 2005 the average salary according to the census bureau was $25036/yr.
400/1900=21% of annual income to purchase a tv. 150/25036=.5% of annual income to purcahse a tv.
Hmm entertainment prices haven't drastically decreased huh? Now consider the VALUE of a 2005 TV compared to a 1940 TV. Better picture, color, more channels, cable/satellite offerings, programs on all night(broadcasts used to stop in the evening), and conveniences like the remote control and your 2005 TV is much much much much much cheaper than its 1940 equivalent.