They have an uphill battle I think. From skimming the movies, most are on Netflix streaming and the annual (single) $79 charge is a hard sell. To at least be in competition they need to spread that out to monthly charge. For now, this is a nice additional benefit for Prime members but is not intended as only being a movie streaming subscription service. Knowing Amazon I am sure it will be in the future as they work on pricing and their catalog. Plus, the quality of the streaming service is excellent from my experience.
Don't forget that Redbox streaming is on the way also!
With all the streaming services the space is getting crowded and competitive. This can be a good thing for pricing, a bad thing for content scatter, and also make things very complex for new consumers. I see consumers having 1 or 2 paid subscription services. Let the battle begin for the number two slot as Netflix is clearly number one today with its massive library and its wide integration on so many devices.
|Jeff Bezos on Amazon Instant Video|