They are offering to Amazon Prime customers, the ability to stream more than 5000 movies and television shows free. If you're currently a member, you get commercial-free video streams for free (and Prime's $79/yr cost beats Netflix's rates), certainly providing added value for Prime members. By increasing the value of Amazon Prime membership, it should encourage a boost in memberships and revenues. But in providing free access broadly, Amazon also gets a jump on Netflix and other outlets in establishing a brand that will promote its online video rentals and sales, and ties into its DVD/BluRay store for those who want to get a hard-copy. Call it market-building and branding for now - but it's another reflection of the shift to online video, and perhaps adding another push in that direction.
I'm watching Contact at the moment (gotta test this thing out), and the quality on the U's network isn't bad.
Update: Found this table (from Clicker) that compares Amazon Prime streaming options with Netflix and Hulu+.
So this is how things go when it comes to that kind of situation. This is the first time I know of this things. Really informative site. Thanks for posting this here.
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