*Amazon.com has raised the prices of its annual Prime program, with some users paying $180 a year.
As reported by Mac Rumors, the fee for a Prime subscription has increased for the first time in four years, rising to $15 per month (up from $13), or $139 per year (up from $119).
The price hike will go into effect for new customers starting February 18, 2022, and after March 25 for current members. It’s unclear if the price hike will apple in other countries.
Amazon says the increase will pay for the “continued expansion” of Prime perks, employee salaries and more expensive shipping costs, per the report.
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“Amazon has historically sold the increase in Prime to consumers by saying ‘we have much more and much more items,’” said Tom Forte, a senior research analyst at D.A. Davidson & Co. “They’re spending billions more on content than they were four years ago. I think there’s a strong case to make for price increases. I think there’s a compelling case that the retention rate will still be high.”
Some of the perks for Amazon Prime subscribers include “free” one-day shipping on purchases made on Amazon, access to Prime Video and Prime Music.
Engadget writes: “As with the last time around, you can likely blame Amazon’s ever more ambitious Prime Video plans for some of the increase. According to Hollywood Reporter, the upcoming Lord of the Rings series is expected to cost $465 million just for its first season — and that’s not including other big productions. Throw in the MGM acquisition and Amazon has plenty of media-related expenses.”
Meanwhile, Netflix is raising prices in the US to $15.50 per month from $14, while the 4K plan will rise to $20 per month from $18, The Verge reports. The basic plan is also rising to $10 per month from $9. Prices are rising in Canada as well.
The price hikes go into effect immediately for new subscribers. The streaming giant is emailing existing members 30 days in advance with the date their price hike goes into effect.
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