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Agreed. I really can't see Prime working as a TV subscription add-on via VM. It's more than just a TV service like Netflix, it includes fast delivery for physical purchases, an e-book rental service and music streaming too.
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I don't see how that wouldn't work! If you can sign up to Amazon Prime on a Smart TV, you can do so via an app on the TiVo, if the parties were agreeable.
The other services on Prime would still be accessible and would be an added attraction to the consumer.