What's New On Amazon Prime? 18 Percent Price Hike Coming Soon

Amazon is raising the price of Prime monthly memberships by nearly 20 percent

Amazon quietly raised the monthly Amazon Prime subscription prices today from $10.99 to $12.99. If you opt to be charged on a monthly basis, however, membership costs are increasing from $10.99 a month to $12.99 a month. The new price works out to almost $156 a year.

If Amazon Prime customers in the U.S. choose to pay monthly, they will be paying $155.88 in total across a 12-month period.

That same fee is jumping for the monthly program for students, as well, from $5.49 to $6.49.

Prime members get free two-day or less shipping on more than 100 million products from the online retailer, as well streaming video from Amazon Prime Video, streaming music from Amazon Prime Music and ebooks from Amazon Reading.

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The annual upfront charge will remain unchanged. Prime Video membership is $8.99USD a month.

Customers who pay for Amazon Prime in monthly installments will see a pretty significant jump in costs. If you're on the monthly plan and wind up sticking with Prime for a year, you'll pay nearly $156.

The price hikes will likely result in customer backlash, especially since this is the first increase since Amazon established the monthly payment option.

"Prime provides a unique combination of shipping, shopping, and entertainment benefits, and we continue to invest in making Prime even more valuable for our members", Amazon wrote in the message. There are an estimated 90 million households using the service, an increase of 30 percent year-over-year.

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That certainly makes signing up for the Amazon Prime yearly subscription much more attractive.

Note: If your Prime membership is associated with a service you receive through another company (such as Sprint), please reach out to that company for details about your membership rate and to manage your membership.

He added that more than five billion items were shipped worldwide to 16 countries with Prime in 2017. The study estimates that Amazon Prime subscribers spend $1,300 per year. However, both Amazon and Netflix have room for further price hikes, which should be expected by consumers, with CBS' Showtime over-the-top (OTT) service costing $11 per month and Time Warner's HBO Now at $15 per month.

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