They probably wish I didn’t have prime :) I literally did ALL my Christmas shopping using Prime (and I have a lot of people on my list...probably around 30.) So they lost money on the shipping just for the Christmas shopping.
But I use them almost every week, sometimes a few times a week. I have MS, and getting to the store is sometimes a hassle, so I use them instead of making a trip to Walgreens, the health food store for vitamins, the pet store for pet supplies, the book store, or the office supply store, etc. They have become my “replacement” store...if only they sold groceries, I’d be in heaven.
Plus the streaming video is fun...I’ve found some old TV series from the 80’s and have enjoyed watching them. I think the $79 is a bargain.
My guess is that they’re fully aware that they’re “losing money” on many prime customers. But I think it’s a strategic move to completely disrupt the marketplace. You see now that all sorts of enterprises are on the ropes - Best Buy being a very prominent example and of course B & N. If they can drive out the competition with prime and lose a few $$, they probably figure it will pay off in the long run. For now, it makes sense to get on the prime bandwagon and ride it for as long as it’s there.