Amazon Prime will raise its membership to $99 a year. The online retail giant informed its members Thursday morning in an email. The increase is twenty dollars a year, from $79 to $99. This change will become effective with your renewal. The price for Amazon’s Prime membership has been the same for nine years.
What do you get for your money? Since 2005, when Amazon sent approximately one million items for free with its two-day shipping, and now where it sends 20 million items, the price has remained the same at $79 a year. Fuel and transportation costs have risen during this time, but not the cost of Amazon’s Prime membership. Did you know that Amazon also has streaming video access? Through Prime Instant Video Library, someone can view 40,000 movies, TV episodes and read 500,000 books on Kindle from the Lending Library.
Your Amazon Prime membership of $99 a month gets you unlimited movies, TV shows, and one e-book to borrow per month.
Recently, the United States Postal Service began assisting in Sunday deliveries. And then, there are drones which could provide quick service someday, like same day 30 minute delivery.
This is the first time Amazon, the online retail giant has increased the Prime membership fee. They do have a student rate, which will also increase by $10 to $49 a year. The date which marks the increase for the renewal fee is April 17th.
The Prime membership is a key component of revenue growth for Amazon, which customers have been willing to pay due to the vast libraries of videos, TV shows and books. Amazon is looking into adding to this mix, by the additional possibility of Netflix’s original programming. This increase comes as Amazon posts losses, even though its company is noted for its largeness and universal recognition.
Recently in December, Amazon allowed Prime customers to gift a membership and the company saw a million new users or customers.
Amazon has invested largely to expand itself, especially in new areas, which include streaming movies, e-read availability and even groceries. The recent increase in customers and online holiday shopping in December accounted for massive delays, that and the snowy weather, just prior to Christmas.
The Seattle-based company does not state how many customers are on board in its Prime membership, but disclosed in December that world-wide it is in the ‘tens of millions.’ An analyst, John Blackledge, from Cowen and Company puts the number at about 23 million. He noted the benefits for Amazon Prime will most likely come in the fourth quarter, reflecting all the new memberships from December 2013.
The delivery of digital media to the consumer per Amazon Prime is big business, and with its vast libraries and availability of such, it continues to grow via the world wide web. The world wide web had a birthday this week; it celebrated twenty five years of phenomenal and explosive growth. Amazon Prime increased its membership to $99 a year, which immediately had stock prices slightly rising. A 2.7 percent increase was good news for investors, even though Amazon stock had been down 7 percent since January.
By Kim Troike