Amazon last raised the price of Prime in 2018.
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In addition, since 2018, the availability of Prime’s free same-day delivery in the U.S. has expanded from 48 metro areas to more than 90 and the number of items available for Prime free shipping increased more than 50%. The company also pointed to new Prime program benefits the continual expansion of the content catalogs for Amazon Music, Prime Reading and Prime Gaming, as well as savings on prescription drugs and free delivery from Amazon Pharmacy.
On Amazon’s Q4 earnings call, CFO Brian Olsavsky said that for now, the U.S. is the only country where Prime rates are going up right now. “We evaluate each country differently. We look at the relative price to the customer versus our cost to supply that and the usage and the value that we’re creating for customers,” he told analysts. “We felt that, especially after not raising the price in the United States since 2018, that the time was right to raise it and we think it’s a much more valuable program today than it was in 2020, let alone 2018.
Olsavsky had cited Prime Video’s exclusive rights to “Thursday Night Football” games in discussing the rate hike. Later, he clarified that “TNF” was just one example “of great new content that we’ve been investing in for Prime members to make their Prime membership more valuable, as well as international sports.”
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