MPEG-2 used to cost $2.50 per device. MPEG-4 is another 25 cents or so. Add another $2.00 for HVEC. MP3 was $0.75-$5.00 per unit. Each video you stream from Netflix or Hulu costs a few cents royalty. Royalties for such things used to be even higher before the threat of unpatented codecs dropped prices (eg, h.264 becoming free to compete with vp9).

Consider all the electronics you've owned over the past 20-25 years. You undoubtedly paid a dollar or two for less complex ones and much more for more complex devices.