At $79 per year, Amazon Prime is cheaper than Netflix streaming only (12 x $7.99 = $95.88 per year). And you get free 2-day shipping to boot.
It's an incredible value. Almost too good of a value actually. But that is what Amazon might just need to compete with the likes of Netflix. Much like the losses they have been taking on Kindle books, maybe they will start eating it on streaming video rentals, too.
