Amazon increased monthly prime membership fee by 18 percent

Javier Stokes
January 20, 2018

Online giant Amazon on Friday hiked the price of its Prime service for USA monthly subscribers which includes access to streaming video and other perks. It's been about four years since the last Amazon Prime price increase, when the company increased the annual price from $79 to $99. The fee of $99 for an annual membership will not change, the company said Friday.

People who fear an annual Amazon commitment - get ready to pay the price.

Customers in the U.S. will see the monthly price of Amazon Prime rise from $10.99 to $12.99.

While Amazon has declined to say how many members it has, analysts estimate that it boasts nearly 90 million in the United States and has rapidly growing worldwide numbers. They are highly lucrative for the company because free shipping and the other perks that come with membership mean Prime members spend more on the platform. Discounted Prime Student monthly plans are jumping from $5.49 to $6.49.

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In June, Amazon announced a new discounted rate of $5.99 per month for anyone who receives government assistance.

The fee kicks in today for new members.

A stable subscriber base makes it much easier to market things that further draw customers into the ecosystem; your Alexas, your Fire tablets, etc. Not the end of the world, of course, but that comes out to about $156 a year - a $24 increase over the old price. The monthly installment pricing is also beneficial for those that might not shop on Amazon frequently, but rely heavily on Prime shipping during the holiday shopping season.

Prime subscribers can store unlimited photos, while Early Access gives members 30-minute early access to some Lightning Deals.

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