Amazon announced the imminent increase in the prices of subscriptions to Prime services for the US users. The service will cost $ 14.99 per month (previously $ 12.99) or 139 dollars a year (previously $ 119). The new rates will come into effect from 18 February next for new customers, while existing customers will be applied after 25 March, on the occasion of the first renewal. This is the first Prime price increase applied in the US market since 2018.
Amazon justifies the measure by citing the wide range of services included, the production costs of Amazon Originals content published on Prime Video (think of the first season of The Lord of the Rings: The Rings of Power alone which will cost over 450 million dollars) , L’increase in wages and gods transport costs. Please note that the Prime service has been active in the United States for more years than in Europe: at its debut in 2005 it cost $ 79 a year and for almost a decade the figure has remained unchanged. In 2014 it went to $ 99, in 2018 to $ 119.
The news was confirmed by Amazon during the communication of the financial results of the last quarter in which to highlight the presence of costs that begin to have a significant impact is the voice of the operating income (difference between revenues and costs): in Q4 it decreased on an annual basis rising from $ 6.9 billion to $ 3.5 billion. For now it is a spy that is placed in a balance sheet for the whole of 2021 in which all the other main indicators have been growing, but evidently Amazon wants to immediately take action.
The CEO Andy Jassystated that the increase in costs is partly attributable to short-term challenges which, however, will recur in the coming months. In particular mod one shortage of manpower and the inflation growth which emerged most prominently in the fourth quarter of last year and which persist due to the pandemic trend.