[vsl2]

I see Amazon trying to build itself, at high cost (I'm sure the Prime membership doesn't cover all of the videos/books licensing plus free 2 day shipping), as the major source of digital entertainment content delivered through the Internet.

Once they've become the primary source and particularly if they're able to control access through their own hardware (Kindle devices), they'll be able to negotiate from a position of power with content providers. Without this type of negotiating power, Amazon (or any other digital media medium like Pandora, Netflix) will always be at the mercy of content creators.

Obviously, Amazon also has its dominant Internet retailing business so its in a good place regardless of whether the digital media services are successful. They now just want to rule the Internet world too.