I subscribe to Netflix, Hulu+, and Amazon Prime. I find I rarely ever watch video on Amazon. I value it primarily for the free shipping and the video service is a bonus. $120/yr is a LOT of shipping. Especially when you actually look at how Amazon Prime products are clearly priced to include the shipping fees compared to the non-Prime versions of the same product.
Interesting thought, can you please show an example of an Amazon sold item that offers two different prices for prime and non-prime?
Unless sold by a third party vendor, I've not seen anything to that effect, and Amazon is still cheaper with its prime items than buying locally (or even from other online shops, frequently).