Published: Mon, April 30, 2018
Markets | By Otis Pena

Amazon Raises Price of Prime by $20 for Annual Membership

Amazon Raises Price of Prime by $20 for Annual Membership

The cost of an annual Amazon Prime membership for folks in the U.S.is about to jump by 20 percent. "So effective May 11, we're going to increase the price of our USA annual plan from $99 to $119 for new members".

"We continue to increase the value of Prime", Amazon CFO Brian Olsavsky said on the call, adding that the company has added "digital benefits", like Prime Video.

According to dated reports, Amazon founder and CEO Jeff Bezos had proudly announced the subscription of 100 million people to Amazon prime that is nearly 25 percent of U.S. population. Those who pay for Prime monthly will continue to pay $12.99 per month, which comes out to about $156 per year.

Amazon Prime is soon going to cost you an extra $20. The price was previously $79 before it went up to $99 that year.

"The value of Prime to customers has never been greater". These are mostly tied to Twitch, which Amazon acquired in 2014 for $970 million. The company will roll out the new fee on May 11 for new customers, and June 16for existing members.

Image Zoom
Image Zoom

Amazon's results came as the company renewed a deal with the NFL to stream Thursday Night Football games in 2018 and 2019 to Prime subscribers around the world. The company's previous year sales total was 35.71 Million.

Amazon's first-quarter profit more than doubled from a year ago, fueled by the growth of online shopping and the cloud-computing service it provides to businesses and government agencies. Robert W. Baird lifted their price objective on Amazon.com from $1,600.00 to $1,800.00 and gave the company an "outperform" rating in a research report on Friday.

Amazon.com, Inc engages in the retail sale of consumer products and subscriptions in North America and internationally. "Once again, AWS delivered the highest revenue growth, increasing by 49% YoY to $5.44 billion and ahead of our estimate of $5.39 billion, followed by 46% growth in North America to $30.73 billion (vs. our $29.84 billion estimate) and worldwide growth at 34% to $14.88 billion (vs. our estimate of $14.25 billion)", the analyst added.

Among first-quarter highlights, Amazon cited the rollout of free two-hour grocery delivery from Whole Foods stores in 10 USA metropolitan areas (Denver, Sacramento, San Diego, Los Angeles, San Francisco, Atlanta, Austin, Cincinnati, Dallas and Virginia Beach).

There are also plans in the works to have Whole Foods grocery orders delivered to the doorsteps of subscribers.

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