Amazon Prime yearly subscription increasing to $119 starting in May

Posted by on
https://ift.tt/2KeuhHA

Renewals after June 16 will jump to new price.

Amazon's Q1 2018 earnings were just released, and the company once again beat estimates. But during the analyst call, it wasn't all good news — at least for customers. Amazon says that it will be increasing the yearly subscription price of Amazon Prime in the U.S. to $119 from the current $99.

Sign up for Amazon Prime

This new price will go into effect for new Prime sign-ups starting on May 11, just a couple weeks away, while those of us who already have Prime won't be hit by the price increase unless our renewals come due after June 16.

We don't yet know if there will be an increase to the month-to-month subscription option, which is currently at $12.99/month ($156/year) after receiving a price bump earlier this year.

Amazon just boosted its (already massive) Prime revenue with a single move.

Amazon recently revealed that it has over 100 million Prime subscribers worldwide — not all of whom pay the equivalent of $99/year, mind you — which is a hefty amount of recurring revenue that Amazon can rely on. Prime has increased in price a couple times since its launch, and Amazon has regularly tinkered with other subscription options for its music service and Amazon Fresh grocery delivery. Those price changes don't seem to be slowing down adoption or retention of Prime subscribers, either — heavily incentivizing people to pay for a full year up front certainly helps that.

Most people with Prime are deeply invested in it at this point and will simply say "sure, what's another $20?" — but from Amazon's perspective, that's a 20% boost in U.S. subscription revenue without growing its customer base. Sure the company is likely to lose a few Prime subscribers, but that small loss will be more than covered by the aforementioned 20% increase from each remaining customer. A smart move, no doubt, even if it isn't particularly customer-friendly.

Sign up for Amazon Prime



from iMore - The #1 iPhone, iPad, and iPod touch blog https://ift.tt/2r2CMNq

Comments

Post a Comment