Amazon Is Hiking The Price Of A Monthly Prime Subscription By 20%

Ivan Schwartz
January 20, 2018

We should note, though, that it doesn't include access to Prime's other benefits - free two-day shipping, access to the Amazon Prime Music library and other perks.

A study released previous year by researcher Consumer Intelligence Research Partners (CIRP) estimates that there are 90 million USA -based Amazon Prime subscribers. Inc. said existing monthly members will start paying the higher fees next month.

Monthly Prime members will see a total yearly increase of $24.

Amazon originally set up its Prime subscription service on an annual plan.

At this point, annual membership fees are not being changed and will remain at $99.

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Today, the online store announced it would be increasing monthly Prime membership rates from $10.99 to $12.99, which comes to around $156 a year.

Amid the price rise, Amazon have continued to add to the benefits that Prime subscribers get. Monthly Prime Student subscriptions, available to college students, were also subject to a price hike, rising from $5.49 to $6.49 per month. The new rates will kick in starting February 18, 2018. The monthly installment pricing is also beneficial for those that might not shop on Amazon frequently, but rely heavily on Prime shipping during the holiday shopping season.

Amazon has stuffed Prime with various new features in recent years, and the membership program remains one of the company's primary cash cows.

Hulu, the number three streaming video provider in the United States, costs $7.99 a month, with an ad-free option at $11.99.

As indicated by the Wall Street firm, if Prime participation is beginning to level, it implies it's essential that Amazon grows Prime to bring down wage family units and those with more established customers living in them.

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