Amazon on Tuesday added unlimited photo storage to its Prime subscription in a move that ups the ante in terms of pricing for Dropbox, iCloud and Google among others.
The cost of storage in the cloud is quickly going to free and Amazon's plan seems to be to add photos as a value add that costs the company little due to its Amazon Web Services infrastructure.
If Amazon can garner a few extra Prime subscriptions due to photo backup and cloud storage, the economics will work.
For Prime subscriptions, Prime Photos is available today. In a nutshell, Prime Photos is basically a spin on Cloud Drive.
Prime includes free two-day shipping, TV and movie content, songs via Prime Music and the Kindle Owners Lending Library.
Look for similar moves by cloud storage players. Microsoft already offers unlimited OneDrive storage with Office 365. Other cloud infrastructure vendors with scale are likely to roll free storage in as a feature. The big question is what Dropbox and similar companies can provide as storage goes commodity at a rapid clip.