Earlier quoted context omitted.
Just to compare to Cloudflare Stream which I consider a honest paid platform: Streaming is $1 per 1000 minutes delivered Storage is $5 per 1000 minutes store per month. 117 videos with 2 hours each and with 150 views each: 117 * 2 * 60 = 14040 minutes stored or $14/month for storage which is $168/year. 117 * 2 * 60 * 150 = 2106000 minutes delivered or $2106. So $3500/year does not seem outrageous.
You do realize that's ~60% of what they attempted to shake them down for, right? An existing customer? With no reasonable notice?
Well, Cloudflare Stream is underlying tech, you would need to write some code on top of it anyway. 40% of premium does not sound like something unreasonable either.
I agree that treating existing customer like that is not a good thing. I just tried to understand whether that price is reasonable at all.