Amazon Today announced the price hike of its valuable service called, Amazon Prime. Amazon Prime which is an annual membership service’s price is increasing from $99 to $119. Amazon has officially announced the new price of their elite service on the company’s earnings call. The new change will go into effect May 11. The same will be applied to the existing members when they renew they membership.
Amazon has been one of the best e-commerce platform, not in the United States, but in other regions of the globe as well. Amazon’s Prime membership lets you explore a variety of other Amazon’s platforms for free with quick deliveries and early access of the deals.
Amazon Prime Membership comes with 1 year of subscription. With Amazon Prime’s Membership, you will be able to access new deals earlier before the common users. You would be able to explore a whole new world of entertainment through Amazon Video. For music lovers, it offers Amazon Music. All these premium services will be there with just one single subscription of Amazon Prime Membership.
Amazon Prime Membership’s price hike was announced by CFO Brian Olsavsky. He further said that, they will continue to do so for the existing customers as they are offering various other services such as Amazon Video.
This seems to be a legit move by the company as they are spending Millions of money for the new contents on their Amazon Video’s platform. To create more fresh and new contents, they need more to invest. By applying the price hike of upto 20% on the original plan, the company is planning to generate more revenue so they can spend the same money for new contents.
Amazon has started this service in the year 2005 in various countries around the world. Gradually, Amazon Prime was made available to more countries around the world. During the launch, Amazon Prime service was available for $79. After a few years of its launch, the company has increased its pricing to $99 in the year 2014. And now, they have decided to increase the price of the same service again. This move is there for the consumers who are always looking for great service by the giant.
Last week, Amazon has revealed that they have over 100 Million Amazon Prime customers. By keeping this in mind, the price hike will generate more revenues and this way the company will collect more money from the existing customers.
The number of Prime customers has been increasing day by day as people have becoming more digital with the use of new technology and smartphones. To get all their required things at one single place, they like to choose such platforms. Amazon Prime is indeed one of the best platform from where you can shop and get entertained at the same time.