Amazon Prime users are furious at the announcement that subscription fees for the delivery and streaming service will increase by 20%.
The US tech giant sent out an email to customers yesterday saying Prime’s monthly price will drop from £7.99 to £8.99.
The price change will be implemented beginning September 15 for new customers, or the next renewal date for existing customers.
Annual membership will also increase from £79 to £95 per year in the UK.
Customers have taken to Twitter to express their outrage at the ‘disgusting’ price hike, which Amazon has blamed ‘increase inflation and operating costs.
Customers took to Twitter to express their outrage at the Prime service’s “disgusting” price hike, which Amazon blamed on “rising inflation and operating costs”.
NEW AMAZON PRIME PRICES
From September 15 for new customers, or on the date of the customer’s next renewal, Amazon will increase the cost of their Prime subscription.
- It will drop from £7.99 to £8.99 each month
- Annual membership will increase from £79 to £95 per year in the UK
Subscribers described the increase as ‘disgusting’ and ‘a disgrace’, with one referring to the fact that the company’s net profit was $33bn (£28bn) in 2021.
Twitter user @poisonousdarce shared a screenshot of the email she received this morning announcing the price change, stating “We are in the midst of a cost of living crisis, the guys”.
Others don’t know why the annual subscription fee has increased by £16, but the monthly fee by just £1.
This means annual customers will pay £4 more each year than monthly customers for the same service.
Amazon offers unlimited free shipping, entertainment streaming and live sports through its Prime subscription service.
A company spokeswoman said: “Prime offers the best in shopping and entertainment and continues to improve every year.
“We’ve increased the number of products available with unlimited fast Prime delivery, recently added super-fast fresh produce delivery, and significantly expanded our high-quality digital entertainment, including TV, movies, music, games and books.
Subscribers described the increase as “disgusting” and “a disgrace”, with one referring to the company’s net profit being $33bn (£28bn) in 2021.
“With rising inflation and UK operating costs continuing to rise, we will be changing the price of the Prime.”
Customers in the United States were hit by a price hike earlier this year when the monthly subscription went from $12.99 to $14.99, or $24 more per year.
The increase affected new members on February 18 and the existing March 25.
And just as UK users are bothered by the extra funds, US customers have also called on people to cancel Amazon Prime.
Just a month after the monthly $14.99 went into effect, the company had announced a loss of nearly $4 billion in the first quarter and that news sent its shares down 10%.
In the first quarter of 2021, Amazon reported net income of $8.1 billion, or $15.79 per diluted share. This year, however, it posted a net loss of $3.8 billion, or $7.56 per diluted share.
Amazon has pumped billions of pounds into its streaming content in recent years, with original series such as The Boys and The Terminal List.
In September, the Prime Video platform will launch The Lord of the Rings: The Power Rings series, which cost around £750million in rights and filming costs.
The company is also investing millions in sports rights, having earlier this month secured the rights to broadcast select Champions League games from 2024, adding to its rights for 20 Premier League games each season.
The Prime price increase is the service’s first since 2014.
It comes months after Netflix increased the basic and standard plans by £1 a month, while its premium plan was increased by £2, just 18 months after a previous increase.
Amazon said it would raise the price of its Prime delivery and streaming service for UK customers, blaming “rising inflation and operating costs”.
The streaming giant said the price changes would allow it to “continue to invest in best-in-class UK productions” and “bring a wide variety of curated quality shows and movies” to customers.
The UK is Netflix’s largest production hub outside the US and Canada, with a UK production budget of $1 billion in 2020.
Netflix’s decision to raise prices again came amid controversy over the cost of living in the UK and drew backlash from some users.
However, one user pointed out that UK audiences can enjoy Netflix at a cheaper price than the TV license, which costs £159 per year (on average £13.25 per month).
Plus, at £6.99 per month, Netflix’s basic package is still cheaper than some of its closest streaming rivals – Disney+ and Amazon Prime (both currently at £7.99 per month).
WHAT VIDEO STREAMING OPTIONS ARE AVAILABLE FOR UK CUSTOMERS?
Price: From £6.99 per month
Price: £7.99 per month OR £79 per year
- Tom Clancy’s Jack Ryan
- The boys
Price: £4.99 per month
- Ted Lasso
- For all mankind
Price: £7.99 per month OR £79.90 per year
- The Mandalorian
- The simpsons
Price: From £9.99 per month
- game of thrones
Price: £4.99 per month
- keeping up with the Kardashians
- Made in Chelsea
Price: £5.99 per month
- Spitting image
- Midsomer Murders
Prices correct from July 2022