As a prime member this is great news. If they expand the available titles I plan on canceling netflix. I will make sure I tell them too. I also just streamed a show on my android phone.

I was pleasantly surprised it works on my Linux laptop ^_^

Nor to anyone who currently get free Amazon shipping via a family member who is a member of Amazon Prime. The free video only applies to the single Amazon Prime member account:

http://www.amazon.com/gp/help/customer/display.html?nodeId=200572880 [amazon.com]

"Prime instant videos require an Amazon Prime membership and are not included with the free shipping benefits provided by Amazon Mom, Amazon Student, or if you are a guest of an Amazon Prime member. To watch Prime instant videos, sign up for a $79 Amazon Prime membership at http://www.amazon.com/primevideos [amazon.com]. If you are a member of Amazon Mom and sign up for a $79 Amazon Prime membership, you will lose any additional months of Amazon Prime shipping benefits you may have earned."

Amazon video on demand:
http://www.amazon.com/Video-On-Demand/b/ref=&node=16261631 [amazon.com]

Subset of "Prime Eligible" movies that Amazon will stream free to Prime members today (2153 results):
http://www.amazon.com/s/ref=s9_al_bw_srch?rh=n%3A16261631%2Cp_85%3A1&page=1&rw_html_to_wsrp=1&pf_rd_m=ATVPDKIKX0DER&pf_rd_s=center-3&pf_rd_r=1G4XGFTBQHGKXW5S6ZP3&pf_rd_t=101&pf_rd_p=1288998822&pf_rd_i=16261631 [amazon.com]

Amazon's distribution center in Reno can hit 90% of the population of Northern California overnight with *regular* UPS shipping. If you order for regular 5-7 day delivery, they pick, pack and label your parcel, and then let it age on a warehouse shelf for a few days. If you pay for overnight or Prime, they don't age it. Amazon Prime is a racket, a profit center, not free shipping.

There are a couple of non-obvious downsides to paying for Amazon Prime.

The first is that it can be a false economy - the expedited shipping is not free, you pay for it up front a year at a time. But since the extra cost is not accounted for in the price of each transaction it makes it harder to comparison shop - it becomes mentally easier to pay a higher price for an item at Amazon rather than purchase it elsewhere because the "total cost" appears to be lower.

The second downside is more insidious - since you've paid up front, Amazon can hold your money hostage. I saw one case a few years ago where Amazon had a dispute with a bunch of fatwallet types - Amazon shipped out 20-30 different products to a couple of hundred customers at a very low price and then changed their mind about the price after the orders were delivered. They told the buyers that they could either return the products for a refund or pay the difference in a second charge to their credit cards. Amazon even went so far as to process those second charges without getting permission.

The people who disputed the charge with their credit cards got the charges cancelled as they were never authorised in the first place. BUT Amazon then "froze" their accounts on their website. The people who had paid for Prime were SOL - sure they had the privilege of expedited shipping on any order for another ~10 months, they just couldn't place any orders. As far as I know, none of those people ever saw a penny of that Prime fee refunded.

While I wasn't financially affected by the incident, seeing how Amazon handled it, I was convinced to never pay Amazon for their Prime service. It isn't a stretch to see Amazon pulling the same stunt with the video streaming - you can stream any video you pay for, but they won't actually let you pay for anything.

FWIW, it also made me think twice about "deals" at Amazon - if they won't stand behind their own system's pricing info, how am I supposed to tell the difference between a promotional discount and a computer error?

I tried it on my @xoom. #fail. Then I tried it on my @droid2. 20 minutes later, my previously full battery was completely drained.

#flashkilledmybattery

I watched for 5-10 minutes, battery still at 90%.

It's not like there is a continuous flow of infinite-capacity trucks rolling by the warehouse 24/7. Both Amazon and the shipping company have to maximize shipment density and at the same time minimize delivery time. One way to do this is to create artificial segments of shipping via pricing. The customers who pay less get a less certain delivery window. The customers who pay more get priority on that night's truck (or however they work it). It's not like the trucks drive faster if you pay more. You are paying more for priority in the logistics chain, which is well worth it for some people.

I read the link you provided in your reply and then some. The "deal" the OP is referring to was a "buy one, get one of equal or lesser value free" offer, and was presented as such by Amazon. However, due to a glitch in their order processing system, it gave you credit multiple times for the lesser-priced of the items. The glitch was posted on a forum, and some people thought it would be clever to exploit the glitch. Reading the thread, apparently one guy ordered over $1,600 of DVDs for something like $25.

Amazon didn't "change their mind about the price." The terms were posted on the site, and any reasonable person would have known that the deal did not entail getting $1,600's worth of DVDs for $25 because of a billing glitch. Amazon simply corrected a billing error after giving people who exploited the error a very reasonable time to return the DVDs (with shipping pre-paid) if they didn't want to be charged. Some of the exploiters chose not to, Amazon billed them per the text of the offer, and a bunch of them complained that they weren't able to bilk Amazon out of thousands of dollars.

Those people were effectively trying to steal those DVDs as surely as if you knew a credit card processor at you local Best Buy is on the glitch and you thought you could get a new flat screen television for free. Personally, I'm glad Amazon didn't let them get away with it.