Umm, the $6.99/month plan is a big blow to Amazon's market advantage. I don't actually see a differentiation between the 2 products now. Amazon did have the price advantage and about the same movie content. They've also picked up new shows like dowton and under the dome while Netflix had only recently picked up Dexter (which wasn't good imho).
Now I'm confused. I think Netflix basically just lowered their price.
At ~29,000,000 paid American subscribers at $7/month, that's $203 Million a month, $2.4 billion in revenue a year. I won't bother counting the 1.4 international members, France isn't going to allow netflix and amazon is going to be in every other country netflix is in going forward so I don't think Netflix will enjoy the early advantage they had in the US.
This is a big deal. How much profit can they expect on those paltry revenues?