It seems that Netflix is not the only company raising prices for its online services in 2022. During Amazon’s reporting of its Q4 2021 fiscal results where it reported sales grew to $173B, the company revealed that it will soon increase Amazon Prime subscription prices in the US. Amazon’s stock price is up $431(15.53%) today…
According to the company (via Engadget), the cost to become an Amazon Prime member will increase from $12.99 per month to $14.99 per month US users. Those who prefer the annual subscription will now pay $139 instead of $119 – which represents a 16% price increase.
The price change will go into effect for new customers starting February 18, 2022, while current Prime members will have their plans updated after March 25, 2022.
This is the first time since 2018 that Amazon has increased the price of the Prime subscription. The company argues that this is due to the expansion of benefits included in the package, as well as increased employee wages and more expensive shipping costs. It’s unclear whether the company will also increase Prime subscription prices in other countries.
With the continued expansion of Prime member benefits as well as the rise in wages and transportation costs, Amazon will increase the price of a Prime membership in the U.S., with the monthly fee going from $12.99 to $14.99, and the annual membership from $119 to $139. This is the first time Amazon has raised the price of Prime since 2018.
Amazon Prime membership includes a range of services and benefits, such as free shipping when shopping at Amazon, exclusive offers, and access to Prime Video, Prime Music, and other Amazon online platforms.
For comparison, Apple offers the Apple One individual bundle for $14.95 per month, which gives you access to Apple Music, Apple TV+, Apple Arcade, and 50GB of iCloud storage. The Premier plan with 2TB of iCloud storage, Apple News+, and Apple Fitness+, plus family sharing for up to five additional people, costs $29.95 per month.
More details about Amazon’s latest fiscal report can be found on the company’s website.
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