Amazon Prime Raises Annual Subscription Rates By 20%

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Well, it was only a matter of time before streaming video services realized just how much people liked them, and would start upping the price to match. I had a hunch it was going to be Netflix with another price increase, or maybe Hulu Plus. But no, it’s Amazon Prime.

The service has formerly been $79 a year, but now rates have increased to $99 for standard customers and $49 for students. According to Deadline, CFO Tom Szkutak told analysts that Amazon was considering the price hike because “during this nine year period shipping cost have gone up a lot, fuel cost have gone up a lot.”

So he credits the shipping side of Prime for the increase, not the video side, though that’s becoming an increasingly important component. It makes sense that given the economics behind the shipping that rates would have to increase, but I hope it can remain a shipping issue, and other video services don’t follow.

Netflix will raise their price someday, but to what? What would pay for Netflix? Actually, maybe don’t answer that, they could be reading.

[Photo via Andreas Rentz/Getty]

Paul Tassi is the Managing Editor of TVovermind and also manages the website Unrealitymag.com. He's contributed to major publications such as Forbes as well as BC Media Group properties.
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