Amazon Prime will soon increase its annual rate to $99, giving newcomers a week to jump in with the $79 cost for free two-day shipping, online video streaming and other services.
Citing shipping expenditures as the main reason, Amazon announced through email that it would increase the Prime member's fee, which hasn't been raised since the service launched in 2005, The Washington Post reported. (Jeff Bezos, Amazon's chief executive, owns the Post.)
Prime, which comprised at least 20 million members as of last year, has grown in numbers and services since it started, adding more titles to its streaming services and lending library as well as more items eligible for free shipping.
The $20 extra will bring in around $400 million, which Amazon can invest into "infrastructure and content costs," the Post reported.
The company is essentially betting that customers' reliance on Prime will ensure it won't lose any members, Forbes noted.
The price hike will come in whenever your Prime subscription comes up for renewal. Customers who have been considering Prime should go ahead with the free trial to make sure to get the lower rate if they decide to keep it, according to Forbes.
The upcoming price change is reflected on the Amazon home page, which has a countdown of days to lock in the $79 annual fee for new customers for the first year.
Amazon Student will increase as well, rising from $39 to $49 each year.
According to the Post, Amazon is looking to build up its Kindle line and invest in more original streaming content. The company is reportedly eyeing upcoming products that could include a streaming set-top box and an inexpensive video game console.
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