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3/14/2014
09:36 AM
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Amazon Prime Increases Price To $99

Amazon Prime customers get free deliveries and instant streaming video downloads. But will they accept a $20 price hike?

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Kristin Burnham
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Kristin Burnham,
User Rank: Author
3/18/2014 | 8:55:03 PM
Re: Twenty Bucks, okay
^^Agreed. A $20 hike isn't all that significant, and pays for itself especially around Christmastime. Jumping from $79 to $119 would give me pause -- a 50% bump is too steep.
Laurianne
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Laurianne,
User Rank: Author
3/14/2014 | 3:58:54 PM
$20 more per year
That is less than $2 per month over 12 months. That's a cup of coffee. Doesn't seem likely to inspire much debate. To Charlie's point, AWS revenues still remain the subject of much speculation. The Prime fee itself is of couse not the end goal.
Thomas Claburn
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Thomas Claburn,
User Rank: Author
3/14/2014 | 3:45:01 PM
Re: More Inflation
It would be nice if the cost of access to Amazon's Prime movie library wasn't figured into the shipping charge.
Somedude8
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Somedude8,
User Rank: Ninja
3/14/2014 | 3:24:42 PM
Twenty Bucks, okay
As a Prime subscruber, $20 doesn't make me stop and re-evaluate the value of Prime. I get stuff fast, often in 1 day, and I but a pretty fair amount of stuff.

The $119 figure though makes me pause for a second and think about it. At that price, I am pretty sure I would stick with it. But it would not be an auto no-brain-engaged response. Maybe that is what they are shooting for.
Charlie Babcock
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Charlie Babcock,
User Rank: Author
3/14/2014 | 1:08:23 PM
Robbing Peter to pay Paul
To me, it's the robbing Peter to pay Paul balancing act. If consumers are hooked, they'll pay a little more. Meanwhile, another distribution center will get built that will put Amazon ahead of any other online retailer, when it comes to deliveries. Or Amazon will use the cash flow gains to again drive down AWS service prices, making it harder for competitors to get in the game. It's a price leader in more ways than one. This statement doesn't allow for accounting that would dictate each business should be profitable or not on its own. But I can't vouch for what Amazon's accounting is since it doesn't split out AWS as a business unit.
ChrisMurphy
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ChrisMurphy,
User Rank: Author
3/14/2014 | 11:57:20 AM
Re: More Inflation
To me, this is a "the first hit is $79" story -- I know our household isn't giving up Prime. Yes, it's a big one-time hike, but the first since launch in 9 years. It's about on track with inflation over that 9 years.
anon7546941148
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anon7546941148,
User Rank: Apprentice
3/14/2014 | 10:16:05 AM
More Inflation
....here we go with more inflation.  Inflation inflation everywhere...  this is a 20% price hike.
Lorna Garey
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Lorna Garey,
User Rank: Author
3/14/2014 | 10:05:13 AM
Everyone will be doing the math
I've seen comments on FaceBook that even with the price hike, based on 2013 orders, people will average under $1 for two-day shipping. When you buy at that volume, $99 is still a bargain. However, you have to bet that people making two Amazon orders most weeks are in the minority.

Which leaves the books and streaming to justify that cost. Do you see Netflix making some dramatic move to counter that? Maybe buying B&N?!
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