12:18 PM, Jan 19, 2018 — Amazon.com (AMZN) raised prices on its Prime monthly membership, increasing the cost for its delivery and exclusive content service for both new and existing subscribers.
The monthly Prime membership for new members was lifted by $2, or 18%, to $12.99 as of Friday. The Prime Student discounted plan for new subscriptions is $1 higher at $6.49 now, the Seattle-based e-commerce giant said on its website. No reason was given for the hike.
“Prime provides an unparalleled combination of shipping, shopping and entertainment benefits, and we continue to invest in making Prime even more valuable for our members,” Amazon said in a statement as reported by CNBC and Recode.
Existing monthly Prime and Prime Student members will pay the new price for renewals happening after Feb. 18, Amazon said. Annual memberships will still be $99 and student subscriptions will continue to be $49.
Amazon said in its statement that it’s increased the number of items eligible for its unlimited free two-day shipping to more than 100 million, and same-day and one-day delivery service under Prime has expanded to more than 8,000 locations.
The company also touted its original programs that are included with Prime Video and said Prime members will continue to benefit from its music and reading services and other “exclusive products.”
In the third quarter, Amazon said subscription services jumped 59% to $2.44 billion, although that number includes Prime as well as audiobook, e-book, digital video, digital music, and other non-Amazon Web Services subscriptions.
Companies: Amazon.com, Inc.
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