Click here to receive Mediabistro’s Morning Media Newsfeed via email.
Amazon Prime Gets Price Bump to $99 A Year (VentureBeat)
Nine years after it launched, Amazon Prime is getting an inevitable price increase. Amazon announced Thursday that Prime will now cost $99 per year in the U.S., a slight bump from the previous $79 a year price. WSJ The Seattle retailer said the 25 percent increase was needed to offset rising delivery and content-acquisition costs. The $99 price takes effect for new members on March 20. Existing Prime members will pay the higher rate when they renew. CNNMoney In February, Amazon said it was considering raising the price to $119 a year. Prime members get two-day shipping on a large number of Amazon items at no extra cost, plus the ability to borrow Kindle books and stream movies and television shows. The company also said that it has increased the benefits of the program, now offering free shipping on 19 million items, up from only 1 million nine years ago. It also introduced its video streaming service in 2011 and recently launched Amazon-produced shows. THR The $99 price point may open the door for a tiered pricing system that would allow people to subscribe to Amazon Instant Video or Kindle’s lending library separately. Amazon does not disclose the number of Prime members, but research from Cowen and Co. estimates that there are about 23 million members in the United States, representing a 37 percent increase year-over-year in January. The research also indicates that 95 percent of Prime members visit Amazon monthly and 85 percent make a purchase.