Amazon Prime Membership Prices to Increase for the First Time in Four Years
Amazon is raising the price of its Prime membership for the first time in four years, as mentioned in the company’s latest quarterly earnings report. The annual membership fee will increase from $119 to $139, and the monthly fee will go up from $12.99 to $14.99. These new prices will take effect on Feb. 18, and current subscribers will see the change after their first renewal following March 25.
Prime Gaming Price Increase Alongside General Membership
With this general price change, the price of Prime Gaming, the Twitch subscription that offers bonus exclusive content, will also increase. The service is included with an Amazon Prime membership.
Reasons for the Price Increase
Amazon attributes the sudden price increase to its recent $1 billion deal to stream Thursday Night Football. Additionally, Amazon has expanded its video library with popular shows like The Wheel of Time, Lord of the Rings: Rings of Power, and the latest season of The Boys. The production cost for Amazon’s latest purchase, Lord of the Rings, reportedly exceeded $465 million. The company also considers its same-day delivery feature, pharmacy delivery, and music division as factors in the decision to raise prices.
Amazon Prime’s Success and Profitability
According to IGN, more than 200 million users have streamed shows and movies from Amazon’s extensive library. With over $147 billion in net sales and $14.3 billion in net income, Amazon remains one of the most profitable streaming platforms and companies worldwide.