Amazon Prime raising monthly subscription costs by about 20%

Amazon Prime a service which includes streaming video and other perks will see a price hike for US customers this month

Amazon Prime a service which includes streaming video and other perks will see a price hike for US customers this month

Amazon has raised the price of monthly Prime memberships in the USA by $2 to $12.99 (£9.40), in a bid to push more people to an annual plan.

Amazon has pushed up the price of pay-monthly Prime memberships in the United States.

Per the outlet, the annual Prime cost in the USA will remain at $99 per year following Amazon's most recent pay increase four years ago.

That prompted Amazon to also lower its free shipping threshold for non-Prime members (who enjoy free two-day shipping on many items but pay $99 each year for that, along with a slew of other perks).

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Being a Prime member gives consumers free two-day shipping as well as same-day delivery and access to Amazon's media services, including Prime Video and music streaming.

As of September, Amazon had about 90 million Prime members in the United States, according to research firm Statista.

The price rise comes as Amazon are stepping up their efforts in producing their own original content for Prime Video. If you buy it on a yearly basis, you're still only paying $8.33 a month, as the $100 yearly subscription price is unchanged. The organization will likewise raise the month to month charge for its Prime program for understudies, which it began the previous fall, from $5.49 to $6.

This price change goes into effect today and will affect any monthly renewals after February 18.

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"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", the company said in a statement. While the monthly plan worked out to a whopping $131.88 if used for 12 months (a hefty increase from the normal $99 / year subscription), the convenience and lack of any significant upfront costs undoubtedly attracted plenty of new customers.

That isn't the only membership fee rising, either. Its members tend to spend far more on the site than non-Prime users.

The firm has said its monthly Prime memberships, which first became available in 2016, are a good way to introduce people to the service.

The company has been adding Prime benefits to draw in new customers.

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