Amazon on Thursday said it was raising the price of its annual U.S. Prime subscriptions by 17%, as it looks to offset higher costs for shipping and wages that it expects to persist this year. Amazon Prime Video, a competitor to Apple TV+, is included in the price of a Prime membership.
Shares rose as much as 17% in extended trade as Amazon also beat profit expectations for the holiday season.
For the holiday quarter, Amazon earned $14.3 billion, double its net income from a year earlier. That included a pre-tax gain of $11.8 billion from its stake in electric car maker Rivian Automotive.
As analysts have expected, Amazon is raising the price of Prime. U.S. monthly fees for the fast-shipping and media service are increasing to $14.99 from $12.99, and annual membership is going up to $139, from $119. The change is effective Feb. 18 for new members and reflects greater benefits such as savings on prescription drugs and faster delivery, Amazon said.
Operational disruptions, lost productivity and inflationary pressures contributed to more than $4 billion in costs during the holidays, [Chief Financial Officer Brian] Olsavsky said.
MacDailyNews Take: Inflation touches everything, but this seems to be the normal cadence for Amazon Prime price increases as the annual fees last went up by the same amount four years ago, and four years before that.
Also, Amazon’s $8.45 billion MGM acquisition has to be paid somehow.
The company announced no changes to Prime membership fees outside the United States.
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Up, up and away!
I’m guessing Jeff feeling a pinch from the expense to “free” his new yacht. Taking a bridge down is a big expense for anyone.
https://edition.cnn.com/2022/02/04/business/jeff-bezos-rotterdam-yacht/index.html
Gofundme could normally be an option to assist Jeff, but they’re a little “busy” right now.
$139 Prime per year
$139/52 = $2.67 per week to have alllll your Amazon stuff delivered within about TWO Days…..!!
Quite a deal. Amazon Prime also gets you their video service as well.
Yes I realize that many sites have free shipping over $35 but using one “portal” is great and the returns are extremely easy……
If you also include the other perks of having Amazon Prime on the gaming side like free virtual items for many popular games, 5-6 free PC games a month and when connected to your Twitch account, and a free subscribe month to your favorite streamer each month the deal is still just as good.
I agree! I don’t mind paying more and getting nothing additional in return. Sounds great! They should increase the price more often, since everyone seems to love the new and improved price for the same old product/ services.
Heck, why not $159 Prime per year?
$159/52 = $3.05 per week to have alllll your Amazon stuff delivered within about TWO Days when there aren’t shipping delays or items are out of stock…..!!
Quite a deal. Amazon Prime also gets you their video service as well.
Yes I realize that many sites have free shipping over $35 but using one “portal” is great and the returns are extremely easy……
Why not $169 per year?
You got one stuck in the chamber bruh…..?!
Why not $3 a day playa……………………