Prepare yourself, Amazon Prime will cost more after March 25
If you have a subscription to Amazon Prime or are considering one, then you will want to know that Amazon will soon raise the monthly and annual prices of the subscription plan in the US (via Engadget). Amazon has not stated whether it plans to increase the cost of a Prime membership plan in other countries as well.
As Amazon announced in its financial report for Q4 2021, the price of an Amazon Prime membership will be increased from $12.99 to $14.99 per month and $119 to $139 per year, which is a 16% increase.
Amazon is also increasing Prime membership prices for its student subscribers and government assistance recipients – to $7.49 per month or $69 per year, and $6.99 per month, respectively.
The new prices go into effect on February 18, 2022. Those who currently have an Amazon Prime subscription will notice the increase after March 25, 2022. But if you have paid for the whole year, prepare for your next year’s payment to be at these prices.
According to Amazon, the price increase is due to 'continued expansion of Prime member benefits,’ an increase in employee wages, and the rising cost of shipping. Certainly financial difficulties are not the reason for the price hike, as the company reported a $33.4 billion net income increase for 2021.
According to the report, Amazon now employs more than 1.6 million people worldwide and invests a lot of money in benefits like health, vision, and dental insurance as well as additional bonuses. For Amazon to continue investing in its employees, it will also need more money, which explains the price increase.
Let's not forget all the investments in entertainment that Amazon is making. Amazon offers an ad-free music platform and many original movies and TV series, which cost a lot of money to make. For example, the first season of the upcoming "The Lord of the Rings" series cost $465 million. Also, the episodes of hit Amazon Prime series like "The Boys" and "The Wheel of Time" cost $10 million each, so Amazon will need more money to continue producing more hit TV shows and movies.
But tell us, what do you think? Do you think that Amazon is justifiably raising prices and that the price increase will eventually lead to more benefits for Amazon Prime members, or do you think that this is simply an attempt by Amazon to make more money from its subscribers?
Amazon is also increasing Prime membership prices for its student subscribers and government assistance recipients – to $7.49 per month or $69 per year, and $6.99 per month, respectively.
The new prices go into effect on February 18, 2022. Those who currently have an Amazon Prime subscription will notice the increase after March 25, 2022. But if you have paid for the whole year, prepare for your next year’s payment to be at these prices.
Why is Amazon increasing the price of Prime?
According to Amazon, the price increase is due to 'continued expansion of Prime member benefits,’ an increase in employee wages, and the rising cost of shipping. Certainly financial difficulties are not the reason for the price hike, as the company reported a $33.4 billion net income increase for 2021.
According to the report, Amazon now employs more than 1.6 million people worldwide and invests a lot of money in benefits like health, vision, and dental insurance as well as additional bonuses. For Amazon to continue investing in its employees, it will also need more money, which explains the price increase.
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