It's not a joke at all. For the Military discount you're looking at what is already a cutrate price. The annual price is stripped down remarkably low BEFORE the discount. But you're right, the annual price only represents an ADDITIONAL saving to you of seven dollars. Look at the monthly price, however. You can save as much as 4 dollars a month, or 48 dollars a year. Is that so bad? With the lowest monthly rate you save at least 24 dollars over a year. That's pretty good if you ask me. What is the discount Netflix gives you? What makes you expect so much?
It's not polite to say mean things about someone who is offering someone else something special in consideration of the risk they put themselves in. I'd be surprised if they're scraping a profit by at those rates.
Regards,
-e