Which is exactly why Netflix for example is moving into content production. Does amazon do the same?

Amazon has a number of self-produced shows. Also, they have an interesting "pilot" season where they put out the first episode of a half dozen or so shows and then let people vote on which one get produced into a full season.

The quality of them is on an uptick as well. 'Transparent' has been getting a good deal of critical attention and 'Tumbleleaf' an old school by hand stop-motion animated production is just incredibly high quality.

Awesome. That's exactly what the big tech companies need to do if they want to break the media monopolies we have currently!

Amazon moved down that path two years ago, and is continuing to look at ways to expand original content:

http://www.digitaltrends.com/home-theater/amazon-joins-netfl...

And for example, Alpha House:

http://en.wikipedia.org/wiki/Alpha_House