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Amazon Prime is getting a 20% price hike in the next few months in the U.S.
Variety reports the annual subscription cost will rise from $99 to $119 per year. The new price will take effect beginning on June 16 for existing U.S. Prime customers based on their renewal period, while new members will start paying $119 on May 11. Amazon last raised the price back in March 2014.
Amazon CFO Brian Olsavsky cited higher shipping expenses and spending on digital content as the main reason behind the price hike. “It’s really nothing more than looking at the state of the program, and the high benefits it’s delivering,” Olsavsky said. “There’s all kinds of new features we’ve continually added to the Prime program. It’s much different than it was in 2014.”
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