If a picture provided to Engadget holds true, then it appears that Amazon is either trying—or launching—a video-streaming service that's unlimited and commercial-free for its users.
Its Prime users, that is.
The screenshot that Engadget's running suggests that those who subscribe up to the company's Prime service, previously benefiting one's Amazon purchases by allowing for "free" two-day shipping for any item the company stocks (following a $79 yearly fee), would gain access to instant streaming of more than 5,000 movies and television shows for no cost beyond the Prime subscription itself. Quality-wise, the assorted media would stream in a 480p resolution right to one's browser.
So what's the problem? The news right now is based off a single screenshot submitted to Engadget and there have been no other reports as to the widespread rollout of such a service. Still, it does follows the company's previous pattern of allowing users access to instant videos on-demand when a corresponding physical copy of select DVDs or Blu-ray titles are purchased. Only, in this case, the commercial-free service would require no purchases whatsoever.
The sound you likely hear right now is the sound of Netflix crying from its headquarters in Los Gatos, California, as the most inexpensive Netflix streaming plan costs one $96 per year at minimum. Netflix, however, does get the last laugh in the device diversity department, as its service allows one to stream entertainment to more systems than just one's PC. So does Amazon's, but there's no indication that Amazon would be bundle its unlimited streaming service to a larger variety of devices like, say, an Xbox 360 or PlayStation 3 console, or the wide variety of set-top players currently supporting Netflix exclusively (including the Apple TV).
Netflix, as well, carries the lion's share of available titles to stream: 28,000 in all, versus the alleged 5,000 coming to Amazon's "free" service.