Apparently, Netflix isn’t the only giant of streaming needing to adjust to the ongoing inflation. Amazon is also preparing for a price increase on its Prime membership in Europe. Of course, Amazon is way more than just a video streaming provider. The US-based e-commerce giant stands as one of the biggest e-commerce platforms in the entire world. As a plus, the company provides a plethora of streaming services from video streaming to music streaming. The Amazon Prime subscription gives users access to the Amazon Prime Video platform and also to free shipping on the company’s e-commerce website. It’s a service that is worth it, but European customers will need to pay around 30 percent more.
According to reports, Amazon will soon release its latest quarterly earnings report. The price hike has been interpreted as passing on some of the high operating costs to consumers. Before Europe, in February of this year, Amazon had already raised the annual fee for free shipping in the United States. The media believes that the price increase also reflects Wall Street’s pressure on Amazon’s new CEO Jassy to increase profits. At the moment, Amazon is also facing a severe operating environment, such as high inflation and an unpredictable economic outlook.
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Amazon Prime price increase will vary by market in Europe
In different countries in Europe, the annual fee increase for Amazon Prime membership is not consistent. Germany currently stands as Amazon’s second-largest market in the world after the United States. The annual membership fee for free shipping in Germany will increase by 30 percent to 89.9 Euros per year. Worth noting, that UK is the third-largest market for Amazon and the membership will increase to around £95. That is equivalent to about $114.47 per year. Other markets such as Spain, Italy, and France will see an increase from 39% to 43%.
As per the news, the Amazon Prime membership fee increase will take effect on September 15. The new price will comprise both new members with free shipping or renewal of old members. If you want to save a few bucks, it’s better to renew your annual plan ahead of the new price increase.
Worth noting that for some European countries, this is the first price increase since 2018. The company’s statement clarifies some reasons behind the price increase. Amazon cites some causes such as rising inflation, rising operating costs, faster shipping for free shipping members, and offerings in free video packages. Furthermore, the addition of new Amazon Prime content also increases the price of the membership.
Amazon had been at the center of controversy recently. The latest Amazon Prime Day disappointed the users. The company has also been in the headlines for suing several Facebook users for fake reviews.