I guess, but it seems like they are losing out on revenue by not offering a service they could easily offer stand alone for the folks like me who have no real interest in ordering a lot of things thru amazon. At what point does the service become worth it to me (for example). So if Prime membership is $99, and say your average 2 day shipping cost is $8, that's a little over 12 orders I need to make to break even. Admittedly if I'm willing to pay $8 a month for the video service as it is, it's like getting the shipping for free basically. However, I'd prefer to pay monthly instead of annually and they won't do that for Prime because of the shipping component.
Fast is also a relative word. In terms of online shipping, I agree, 2 day shipping is pretty damn good and fast. But most things I need I'd prefer to just go to a brick and mortar store and get it that hour (not to mention the last time I ordered something from Amazon the post office screwed it up...Amazon has the best customer service in the world so they fixed it and I'm not mad at them at all, but it's another risk of home delivery). It's pretty much the reason I don't order a lot of stuff online that needs to be delivered. However I own a Kindle Fire so I order a ton of stuff that can be delivered instantly (ie games, books, songs, renting some movies, etc.)
I have no major issues with the business philosophy, but to me it doesn't make much sense to offer the video service as an extra to prime and not just sell it in general. Does the company really make more revenue from saying "damn I'd love to watch Justified online so I'll pay $99 a year and get free shipping...hell I might make a lot of purchases now" vs. losing revenue from people like me who say "damn I'd love to watch Justified online but don't feel like dropping $100 all at once to use a service that I've historically not used very much."