Amazon to Raise Price of Amazon Prime to $99 Starting April 17

Amazon is going to raise the price of its Amazon Prime service to $99 starting April 17. That is a 25% increase from the current price of $79. The membership program includes free 2-day shipping on many items. It also includes free streaming of select movies and television shows as well as select free ebooks.

Amazon said in an email sent to Prime members and in a FAQ that members will pay $99 per year starting on their renewal date. Amazon Student members will pay $49.

Amazon has 25 million Prime members. A New York Times article says some members are not pleased about the $20 price increase. The Times story says Piper Jaffray analysts recently surveyed U.S. Prime subscribers and found two-thirds would not renew if the price went to $109. However, the Times story says the Piper Jaffray analysts don't believe that many people would actually cancel. Piper Jaffray analyst Gene Munster thinks about 25% of the Amazon Prime member base is highly price sensitive.

Posted on March 13, 2014

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