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Sounds to me Amazon is fighting to survive. Their Kindle hardware will not provide the growth they need in a few years. Their software (in terms of book sale) is quickly becoming "One Of" not "The One" like it used to be.
A media player will reinforce the rumor of Amazon acquiring Netflix. It could be a good play to hedge. The draw back is that Netflix is pricey and doing so will also make Amazon stray away from their bread and butter business of book selling.
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