Amazon had good news for investors on Thursday withfourth-quarter earnings, but there was bad news for subscribers of its Amazon Prime service: the annual membership cost in the US will increase from $119 to $139, while the monthly rate will jump from $13 to $15.
Amazon gave several reasons for the price hike in its earnings press release, including more big-budget shows on Prime Video like The Wheel of Time, Jack Reacher and the upcomingas well as its to NFL’s Thursday Night Football. The company also touted expanded availability for same-day delivery to 90 metropolitan areas nationwide, free shipping for more items and more deals on products.
Pricier Amazon Prime subscriptions could make competing services more attractive, like, which currently costs $98 per year. While the superstore chain’s service doesn’t have the extensive list of TV shows, movies, music and games included with Prime, Walmart Plus could appeal even more to budget-conscious consumers looking to save on shipping costs for goods.
This is the first Amazon Prime price hike since 2018, when Amazon increased its annual rateand from $11 to $13. Given the service for a yearly $79, which is around $115 adjusted for inflation, according to the Consumer Price Index, Amazon’s new price hike bumps it up a bit ahead of schedule.