When you think you know what heavy hitting business models are out there, you should wait a few weeks and check back with Amazon.com.

Today, they’ve announced that all Amazon Prime members will now be able to access hundreds of movies and TV shows on Instant viewing service.

Fortunately, I still have my Amazon Prime activated from back when they gave all college students a free year. In quickly clicking through the Prime free selection, I can’t say there’s too much stuff I want to be watching at this moment.

What is more interesting though, is the continuing fragmentation of existing movie/TV distribution channels. I believe the average college student will move out and not re-up on their cable subscription. Who in their right mind would pay over a hundred dollars a week for access to shows that are only played on certain channels on certain times?

Instead, I think we’ll continue to see large independent subscription models, with all you can eat packages, tiered by quality of content. Just look at other providers like Hulu, Netflix, Cable on Demand, and now Amazon. The real fun will be if Amazon unleashes a video Kindle-style device. Then we’ll see some real flares against the iTunes store and the iPad.

Just a matter of time until color eInk or an alternative is perfected, and computing speeds get that much faster…