"Some of the best ideas may initially look like they're serving the movie and TV industries. Microsoft seemed like a technology supplier to IBM before eating their lunch, and Google did the same thing to Yahoo."
I agree, and this would be a very typical long-term move by Amazon: they systematically partner with existing incumbents, and then develop a business model that renders them redundant. Book publishing was the first example.
I agree that just because they work with the studios doesn't mean they don't fit the bill.
I think they don't fit because it's boring. It's scaling up and updating of "I'll help you sell your screenplay" newspaper ads. Open to everyone but with predatory terms.
Another middleman to the studios.
It's not innovative and it's not killing anything.