Amazon confirms new $99 pricing on Amazon Prime


Amazon (AMZN) confirms in an e-mail to customers that it will bump up the price of Amazon Prime to $99 when their memberships renew.

The company notes the 40K movie and TV episodes available to customers through Prime Instant Video, along with the 500K books through the Kindle lending library.

It also makes some hay out of the two-day free shipping option for Prime members which now includes 20M items.

AMZN +2.1% premarket

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Comments (12)
  • Esekla
    , contributor
    Comments (4356) | Send Message
     
    I'd speculated that they'd use this to push sign-ups forward for people who want to get in at the lower rate. The price hike takes effect April 17, 2014, as linked here:

     

    http://seekingalpha.co...

     

    but while that's definitely how it worked in Europe, the situation is less clear here. Does anyone have definitive evidence?
    13 Mar 2014, 09:05 AM Reply Like
  • Peter Larson
    , contributor
    Comments (642) | Send Message
     
    There's a bit of grandfathering for a year, but who cares? That just means they need to keep paying for free shipping without even getting the extra $20.

     

    Here's the problem; when they admitted that they needed to increase the price of prime, Amazon admitted that they are losing money on the service. It is structurally broken.

     

    The minor price hike doesn't solve the underlying structural issues. In a year they'll be right back where they started.

     

    They need to be more creative. Actually restructure the program.
    13 Mar 2014, 01:27 PM Reply Like
  • www2280
    , contributor
    Comments (528) | Send Message
     
    Good deal
    13 Mar 2014, 09:08 AM Reply Like
  • Sirvasq
    , contributor
    Comments (331) | Send Message
     
    Excellent deal, and if you bought AMZN ahead, you pay for the cost bump for life.
    13 Mar 2014, 09:16 AM Reply Like
  • $vix
    , contributor
    Comments (635) | Send Message
     
    I'll pay $99 per year and for that I'll get:

     

    1. Higher Prices - Amazon charges some of the highest prices on the interent compared to other vendors- ebay, Target, Best Buy and many local vendors. Search for the interent for yourself before blindly buying on amazon. Just bought a TV as a gift : RCA LED40C45RQ Its $389.99 at amazon or $370 from their 3p vendors. Best Buy sells it for $289.99 all day every day. Why pay amazon $80-$100 MORE for the same item.

     

    2. Free shipping for a fee - Most online vendors offer free shipping... for Free without any annual fee. Many vendors still do not charge sales tax. So why pay amazon $99 per year for free shipping.

     

    3. Free video for a fee. -Free video can be found many places. Hulu and Crackle are completely free and have an ever growing selection. With all the money I save shopping anywhere other than amazon, I'll sign up for Netflix and enjoy a far better selection, user interface and user experience.

     

    The interent is a vast sea of excellent vendors who are eager to please and who offer wonderful pricing service and perks. I prefer not to be locked into amazon and miss out on other buying opportunities.
    13 Mar 2014, 09:55 AM Reply Like
  • Mark Devin
    , contributor
    Comments (25) | Send Message
     
    I know. It's galling, isn't it?
    13 Mar 2014, 10:03 AM Reply Like
  • Esekla
    , contributor
    Comments (4356) | Send Message
     
    Well, I'm not a subscriber, but I've checked with others and it looks like you can avoid the price bump for a year by signing up before the deadline mentioned above.
    13 Mar 2014, 10:08 AM Reply Like
  • Mark Devin
    , contributor
    Comments (25) | Send Message
     
    My email (standing Prime Subscriber) said I'm $79 through 2014, renew at $99 March 2015.
    13 Mar 2014, 10:13 AM Reply Like
  • Mark Devin
    , contributor
    Comments (25) | Send Message
     
    P.S. And how about that LG 4070 huh? It's *madness* out there!
    13 Mar 2014, 10:18 AM Reply Like
  • RussellL
    , contributor
    Comments (991) | Send Message
     
    "Best Buy sells it for $289.99 all day every day. Why pay amazon $80-$100 MORE for the same item."

     

    Lie much? It's on SALE for $289.99
    http://bit.ly/Pz9wcQ

     

    NO retailer, Amazon or Best Buy, ALWAYS has better prices than their competitors.

     

    "Most online vendors offer free shipping... for Free without any annual fee."

     

    Most online vendors will charge you more for the product.

     

    "Free video for a fee. -Free video can be found many places. Hulu and Crackle are completely free and have an ever growing selection."

     

    Not the same selection offered by pay streaming sites plus Hulu and Crackle have commercials.

     

    "With all the money I save shopping anywhere other than amazon, I'll sign up for Netflix and enjoy a far better selection, user interface and user experience."

     

    Sure you do, CEO of several firms.
    14 Mar 2014, 12:31 AM Reply Like
  • Sakelaris
    , contributor
    Comments (2505) | Send Message
     
    Forty thousand movie and TV shows and episodes free with Prime? Well, I am going to keep my Prime membership. The free shipping is good, too.
    13 Mar 2014, 01:28 PM Reply Like
  • NYer1
    , contributor
    Comments (2725) | Send Message
     
    If 1 out of 5 members does not renew then this $20 price hike for Prime is a wash for AMZn (on its existing member base).
    On the other hand, this move does project weakness and sure enough the sharks are circling.
    Shop Runner has announced they will offer their free 2 day shipping service for free to AMZN Prime members for 1 year http://nyti.ms/1iHpqtV
    13 Mar 2014, 10:26 PM Reply Like
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