There is huge amount of news on Amazon's Kindle release. i have ordered mine. It is hard to argue with $199 especially if you already are an Amazon Prime user. Amazon is figuring out that Prime is its money making user base. As ZDNet points out the Amazon Prime users are where the money is for Amazon.
2x to 5x: Spending levels of Amazon Prime subscribers over non-Prime subscribers.
Here is the Kindle Fire Commercial.
But, here is a good question to think about. Given Netflix self-inflicted wounds of separating DVD Rental from streaming, what happens if Amazon Prime starts a DVD Rental business? You can rent movies from Amazon through streaming. Why couldn't Amazon have yellow envelopes to compete against Netflix's Red envelopes. Sorry Qwikster's red envelopes.
Amazon has distribution warehouses around the world. Now you could say why waste the time to rent DVDs. Streaming is the future. If this was true why doesn't Amazon get out of the business of selling DVDs? This is all about economics and business models. Reinventing Retail!!!
Can Amazon Prime be in the same business as Qwiksterh (Netflix) DVD rental? Yes. Will they. If the numbers make sense. Why not?
