Amazon Prices Are Going Up – Is ‘Lord of the Rings’ to Blame?
Amazon is going all-out for its original series, but that money has to come from somewhere. The company confirms its Prime membership costs will rise 20% next month, and it may just have to do with all those expensive new TV offerings like Lord of the Rings.
The change in pricing was announced during Amazon’s first-quarter earnings call Thursday. The current rate of a $99 annual subscription will go up to $119 per year on May 11, though existing subscribers will maintain the current price through at least June 16, after which renewals will match the rising rate. The last Amazon Prime price hike came in 2014, at which time subscriptions cost only $79.
So why the change, given the ungodly profits Amazon racks up – $1.6 billion last quarter, tax free? Well, easy as it is to joke the $1 billion price tag for a new Lord of the Rings series is digging into subscribers’ pockets like they’re hiding the One Ring, insiders say the pricing adjustment has more to do with the overall services Prime provides to its 100 million global subscribers. There’s still free two-day shipping on a rising number of goods, as well as Prime’s expanding access to other TV shows, movies and music. Thrillist also points out that members “may start to see more benefits from the Whole Foods and Amazon merger” to help offset the cost.
So yes, while Amazon has spent an insane amount on new Lord of the Rings, Jack Ryan, Utopia, The Boys, A League of Their Own and existing shows like Man in the High Castle, there’s more to it than torturing us TV viewers. And there’s always the monthly Prime subscription of $12.99, anyway.
Check Out 100 TV Facts You May Not Know!