Following Netflix’s increase in their monthly fees in October, Amazon is raising the price of their Prime membership. Classic drug dealer strategy, offer the product at a discounted rate, get you hooked, then ramp up the price once you’re addicted. Amazon will raise their monthly Prime membership by nearly 20% and the price hike starts immediately.
Amazon Prime members who enjoy benefits such as free shipping, streaming video, and other entertainment offerings will now pay $12.99, up from $10.99, an increase of 18%. The new price works out to $155.88 yearly. But if you sign on for a year the cost is only $99 and the yearly rate for students remain at $49. The new pricing will affect current monthly accounts if they renew after February 18. The price for Prime Video memberships will remain at $8.99 a month and the $5.99 rate for customers on government assistance will stay the same.
A basic Netflix subscription, which is not HD and is for only one screen, is $7.99 per month. The standard tier, which allows for two screens and is HD, is $10.99 per month. The premium tier, which is available in Ultra HD and provides service on up to four screens, is $13.99 per month. Hulu with limited ads is $7.99 a month and Hulu with no ads is $11.99 a month. A record number 60 million U.S. members have subscribed to Amazon Prime according to Cowen analyst John Blackledge, who released the figures this month. This is 20% higher than last year’s numbers. According to the data 54% of U.S. households are now Prime subscribers as of December of 2017, up from 18% in 2013.