Whoever said good things don’t last forever wasn’t kidding. Amazon announced that it is raising the price of its Prime membership that comes with free Prime two-day shipping and access to Prime Video. The announcement came from Amazon CFO Brian Olsavsky during a conference call.
Pricing is going up from the standard $99 price up to $119, signifying 20-percent price increase. Olsavsky stated the price increase is due to “rises in cost” of the Prime services. The price hike will go into effect start May 11 for new users while renewals will see the increase starting June 16.
The move follows Amazon’s price increase of Prime’s monthly payment price from $10.99 to $12.99 earlier this year.
We doubt the price increase will deter many Prime members from renewing their membership. It offers a lot of perks at a killer price. If you break down the price per month, it comes to about $8.33. Now the price will average $10 per month. That’s still on par with subscription services like Netflix and Spotify, yet users still get much more bang for their buck.
Amazon CEO Jeff Bezos stated the company now boasts over 100 million Prime subscribers worldwide. Some of those members on the yearly Prime subscription plan are will have to pay up more very soon, myself included.