I think where its going to hurt them is Prime memberships, those of us that are paying for a service annually are seeing less value and are less likely to renew. That being said, working at a large company in a sales capacity, recurring revenue (ie a Prime membership) creates a more sustainable and predictable business than relying on the margin from the product alone. Whether they figure it out now, or down the road, they are going to hurt that recurring revenue they are receiving from a large customer base and I am willing to bet lose most of those customers as a result and be thought of second when it comes to a future purchase, rather than be thought of first.