Amazon.com, Inc. (AMZN): Prime price increase not slowing membership growth
Amazon.com, Inc. (NASDAQ:AMZN) said earlier this week that consumers are continuing to sign up for Prime even though there was a $20 fee increase that went into effect last week. Amazon Prime is a subscription service that includes free two-day shipping, access to Prime Instant Video, and the Kindle e-book library. Amazon increased the fee from $79 to $99 on April 17th.
“It’s early, but we’re encouraged by what we see so far,” stated Amazon Chief Financial Officer Tom Szkutak on a conference call when the Q1 earnings were posted. Amazon met Wall Street expectations on earnings per share and hit slightly better than expected in sales.
Szkutak was asked about the impact of the fee increase on subscriptions and Amazon’s efforts in media streaming. Szkutak did not discuss the full details, but he said that Prime subscribers continued to grow week over week in the last several weeks.
Prime is a HUGE part of Amazon’s business. Amazon said that its subscription covered the shipping of 19 million eligible Prime products. Earlier this month, Amazon announced that the number was now 20 million. Amazon said its video streams on Prime Instant Video almost tripled in the last year.