You are absolutely correct in that you are missing my point. A loss leader always cuts into profits. That's part of the definition of a loss leader. The loss is likely expanding due to inflation and increase in services (Keep in mind, the streaming portion, which is now a major driver of Prime subscriptions, was added without increasing the price). That being said, adjusted for straight inflation, the price would have been about $99 ($97.43, based on CPI to 12-31-13) anyway. In reality, the spending power surrendered to get Prime access has fallen.