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

Apple a decade behind Japan mobile payment curve

13 hours ago

Apple's proud announcement that its new iPhone could be used to buy goods in a single swipe left customers non-plussed in Japan, where mobile contactless payments have been normal fare for a decade.

Alibaba IPO gives fresh life to Yahoo

16 hours ago

China's Alibaba will star on Wall Street with its upcoming stock offering, but US-based Yahoo also gets a windfall, which may help the turnaround efforts of the fading Internet pioneer.

China's Alibaba sets new path with US IPO

16 hours ago

With a possible record-breaking stock offering, Chinese online giant Alibaba is set to boost its role as a global company with a massive expansion potential.

Netflix sets sights on European screens

Sep 13, 2014

US online streaming giant Netflix will launch the second phase of its European expansion plan on Monday as it sets about seducing French viewers with a "House of Cards"-style drama set in Marseille.

User comments : 0