Amazon is raising the price of Amazon Prime subscriptions for the first time in four years. The price increase not only reflects content production, but also live sports streaming and other benefits of its program, including Prime free shipping, Amazon Music, Prime Reading, Prime Gaming and Amazon Pharmacy.
The company is raising the cost of an annual membership from $20 to $139, reports The Hollywood Reporter. Monthly subscriptions will cost $14.99 per month, which is $2 per month more than before. During Amazon’s earnings call on Thursday, CEO Brian Olsavsky said rising prices will pay for new Prime Video content, as well as heavy TNF contract, which will go into effect for the 2022 NFL regular season in September. The new costs will take effect Feb. 18 for new members and after March 25 for current Prime members, reports CNN.
“Since 2018, Prime Video has tripled the number of Amazon Originals,” Olsavsky told analysts. “The continued expansion of Prime member benefits and the increased usage we’ve seen, along with rising costs and inflation” played a role in the decision to raise prices for the first time since 2018. Along with new content, Amazon has expanded same-day delivery options and other perks like pharmacy and grocery delivery.
the Thursday night football The deal would cost Amazon $1 billion. Amazon is also adding more expensive shows as a new the Lord of the Rings series which is expected to cost around $500 million for the first season. The boys and wheel of time are not cheap to produce. Amazon thinks it’s worth it, as more than 200 million Prime members worldwide have streamed Prime Video content, the company said.
Amazon recorded $137.4 billion in net sales and $14.3 billion in net income during the fourth quarter of 2021. Over the past year, Amazon recorded $470 billion in net sales and a net income of $33.4 billion. Amazon also revealed ad revenue for the first time, bringing in $31 billion for all of 2021.
Last month, Netflix announced that it would increase its prices by $1 or $2 per month, depending on the plans. The price increase went into effect almost immediately for new subscribers after it was announced. The basic Netflix package now costs $10 per month. The standard plan, which includes HD streaming, will cost $15.50 per month. The premium plan is now $20 per month and includes Ultra HD streaming and lets subscribers stream to four screens at once.