Amazon’s Prime service, which provides members with “free” two-day shipping and lets them stream movies and TV shows, is about to get more expensive.
The online retail giant emailed customers Thursday morning to inform them that an annual Amazon Prime membership, which has cost $79 since its launch in 2005, will cost $99 starting next week. For existing members, the price hike will go into effect upon membership renewal.
The price increase isn’t quite as steep as Amazon signaled it would be. Amazon said in January that it was considering hiking the price to $119 a year, and some analysts expressed concern that the change could result in the loss of members. The Prime program reportedly has more than 10 million members, who spend about $1,200 annually with the company, more than twice the amount spent by non-members. (The retailer has never released such details on Prime subscribers.)
The announcement comes as Amazon positions itself to become an even bigger player in the streaming video and music market. Reports surfaced this week that the company will soon unveil its much-anticipated set-top TV box as well as an on-demand streaming music service.
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The box could offer Prime members access to Amazon’s library of more than 40,000 movies and TV episodes, and reportedly may also include apps for competitors like Netflix and Hulu Plus. Membership in Prime is slightly more expensive than a Netflix membership, which runs $96 per year.
The number of items eligible for unlimited free two-day shipping has increased from 1 million to more than 20 million since Amazon Prime’s inception. Nonmembers get free shipping for any order over $35.
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