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Old 04-19-2016, 07:56 PM   #27
emellaich
Wizard
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It's possible that this is a stock market move not a marketing move. This paves the way for Amazon to begin reporting revenues for its video business. Amazon can take full-prime members and count 80% of their membership fees as prime fees.

The advantage of this? Netflix has a valuation of about $40 billion. Amazon is worth about $300B. However, they may claim that the video portion is undervalued. If Prime video is seen as a give away riding on the coat tails of free shipping then very little of that $300B can be attributed to Prime Video. By focusing on it as a separate business they might argue their market cap should be $340B (300 for the rest of Amazon and 40 for prime video).
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