Amazon boosts price of 'Prime' membership to $99 in US

Mar 13, 2014
An Amazon parcel is seen on a conveyor belt before being shipped to a client on December 13, 2012

Amazon is boosting the price of its "Prime" membership to $99 a year, a 25 percent jump for US customers seeking free delivery and access to the streaming video service.

The price hike unveiled Thursday is the first since Amazon launched the program in 2005.

"Even as fuel and transportation costs have increased, the price of Prime has remained the same. If you consider things like inflation and fuel costs, a Prime membership valued at $79 in 2005 would be worth more than $100 today," an Amazon statement said.

"Beyond that, we've gone from one million to more than 20 million eligible items for express shipping, added unlimited streaming with Prime Instant Video and books to borrow for free with the Kindle Owners' Lending Library. Plus, our members have a voracious appetite for Prime's unlimited free two-day shipping."

The Prime membership packages several services including a streaming which competes with that of rivals like Netflix, which charges $8 a month, or $96 a year.

Amazon hinted at the increase earlier this year when its said the company was studying an increase of up to $40 a year.

Amazon, which began as an online bookseller, now offers a range of products and services including e-books, Kindle tablets and e-readers. It is also a major provider of cloud computing services.

In its global operations, Amazon has programs similar to Prime at various prices, which are not affected by the change. For example, Amazon UK has a Prime service at 79 pounds and Amazon France Premium costs 49 euros annually.

Explore further: Amazon ships twice as many items through Prime vs. free shipping

add to favorites email to friend print save as pdf

Related Stories

Recommended for you

Ticketfly buying WillCall for on-premise data

14 hours ago

Ticketfly Inc., a San Francisco-based technology company among several posing a challenge to Ticketmaster, is acquiring WillCall Inc., a crosstown rival that turns your smartphone into a mobile wallet at live events.

HP revenue inches up after years of decline

Aug 20, 2014

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

Restaurants experimenting with pay-in-advance tickets

Aug 20, 2014

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

Chip maker Infineon to buy California firm for $3B (Update)

Aug 20, 2014

German chip maker Infineon Technologies AG says it has agreed to pay $3 billion in cash for California-based semiconductor firm International Rectifier, which produces power-management components used in everything from cars ...

User comments : 0