Retail watchers think an increase in the cost of Amazon (AMZN) Prime to $119 per year will fly with most consumers as they crunch the numbers on the wide benefits they will receive with a continued or new membership.
The company has the ability to boost streaming options and Kindle offerings if initial churn rates look discouraging, notes IBISWorld.
If things go smoothly for Amazon Prime at the $119/year level, revenue could soar, according to analysts. The mid-point of 6 different forecasts puts Prime gross profit at just a shade below the $500M/year mark.
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Earnings call transcript: AMZN tips $20-$40 Prime price hike