Higher costs and more offers: Amazon Prime is getting more expensive

Status: 07/26/2022 08:56

By September at the latest, millions of Germans will have to dig deeper into their pockets to get a subscription to Amazon Prime. The annual subscription of the internet giant is 30 percent. more expensive.

The annual Amazon Prime service fee has increased by almost a third. Users will soon have to pay significantly more for monthly billing.

With monthly payment, Amazon Prime will cost € 8.99 in the future instead of the previous € 7.99. Annual membership costs 89.90 euros instead of the previous 69 euros. The amendment applies “at the earliest when the next payment is due, on or after September 15, 2022,” the group said in a statement.

World inflation

Germany is Amazon’s second largest market after the United States. In Great Britain, the third largest market, fees will increase by 20%. In Spain, Italy and France, Prime members pay 39 to 43 percent more per year. In February, Amazon announced a price increase from $ 119 (about € 116) to $ 139 (€ 136) for annual payments in its US home market.

Amazon has cited high inflation and increased operating costs to justify the price increases. In addition, faster delivery and more streaming content result in higher costs. “We will continue to work to ensure that Prime offers exceptional value to members,” the company said.

In its announcement, Amazon noted that this was the first increase in Germany since 2017 and that the offer was extended, among others, by o streaming video. Amazon Prime customers enjoy free shipping for their orders from the company and participating sellers on the platform. They can also access streaming video and music from Amazon Music and Amazon Video.

The premiere was distributed in Germany

Amazon does not publish current data on the number of Prime customers in Germany. In 2019, according to research, there were approximately 17 million households in Germany with a Prime subscription. This means nearly half of the approximately 41 million households in Germany should now have a Prime subscription, assuming typical Amazon growth rates. Amazon CEO Jeff Bezos said last year that the company has over 200 million Prime customers worldwide. This is equivalent to a doubling in three years.

Amazon isn’t the only streaming service to raise subscription fees. Video provider Netflix has significantly increased fees for its customers in the US and Canada this spring. Usually a few months later the price screw is also rotated in Germany.

Netflix has to finance the productions

Complex in-house productions in particular drive up costs for Netflix. According to market research company Ampere Analysis, in 2022 alone, Netflix will invest more than $ 230 billion in new content around the world. The American company recently announced a decline in new customers. Netflix is ​​now planning an ad-funded subscription to keep itself financially against competition such as Disney + and Amazon Prime.

Sports laws make Sky and DAZN more expensive

Streaming services have also become more expensive recently, with an emphasis on sports broadcasts. At the beginning of the year, Sky increased the subscription fees for several packages. Entertainment Plus with the Bundesliga now costs EUR 27 a month instead of the previous EUR 25. Sky was blamed for investment in broadcast technology and more programming offers.

Sky’s competitor DAZN even raised the cost of its monthly subscription from 14.99 to 29.99 euros in July. DAZN has also invested heavily and outperformed competitors in the competition for media rights to broadcast matches of the German football league (DFL) and the European association UEFA. This comes at a price for customers.

Amazon Prime is getting more expensive

Jan Plate, HR, 7/26/2022 11:12

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