Amazon has announced that it will be raising the price of their Prime membership in the coming weeks. During their fourth-quarter earnings report (via The Hollywood Reporter), the company cited growing entertainment offerings and an exclusive deal with NFL to stream Thursday Night Football as the reasons for the increase.
This is the first time that Amazon has raised its Prime membership fees in four years. The cost of the annual membership will go up by $20 to a total of $139, while a monthly membership will cost $14.99 — $2 more than it was previously.
“Since 2018, Prime Video has tripled the number of Amazon originals,” said CFO Brian Olsavsky on the company’s earnings call. This, along with “the continued expansion of Prime member benefits, and the increased use we have seen, along with increased costs and inflation,” resulted in the price hike.
Prime Video is home to several popular streaming shows, including The Boys, Wheel of Time, and The Marvelous Mrs. Maisel. The company also plans to launch its high-profile Lord of the Rings series, which carries a price tag of $500 million for a single season. In addition to Prime Video, Amazon has also launched benefits including pharmacy delivery, grocery benefits, and podcasts.
“As expected over the holidays, we saw higher costs driven by labor supply shortages and inflationary pressures, and these issues persisted into the first quarter due to Omicron,” said Amazon CEO Andy Jassy in a statement. “Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic.”
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