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Amazon Prime subscription is getting more and more expensive

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Status: 07/26/2022 08:56

Millions of Germans will have to dig deeper into their pockets to subscribe to Amazon’s Prime service by September at the latest. The Internet giant’s annual subscription is 30% more expensive.

Annual fees for Amazon’s Prime service have risen by almost a third. Users will soon also have to pay a lot more for monthly billing.

With the monthly payment, Amazon Prime will cost EUR 8.99 in the future instead of EUR 7.99 before. Annual membership costs 89.90 euros instead of 69 euros previously. The change applies “at the earliest when the next payment is due on or after September 15, 2022,” the group said in a statement.

Global inflationary wave

Germany is Amazon’s second largest market after the United States. In the UK, the third largest market, fees will be increased by 20%. In Spain, Italy and France, Prime members pay between 39 and 43% more per year. In February, Amazon announced a price increase from $119 (about €116) to $139 (€136) for annual payments in its US home market.

Amazon cited high inflation and increased operating costs to justify the price increases. In addition, faster delivery and more content to stream lead to higher costs. “We will continue to work to ensure Prime provides exceptional value to members,” the company said.

In its announcement, Amazon pointed out that this was the first increase in Germany since 2017 and that the offer had been expanded in video streaming, among other things. Amazon Prime customers can use free shipping on their orders from the company and participating retailers on the platform. They can also access streaming video and music from Amazon Music and Amazon Video.

First widespread in Germany

Amazon does not publish current data on the number of Prime customers in Germany. According to a study, there were around 17 million households in Germany with a Prime subscription in 2019. This means that almost half of the approximately 41 million households in Germany should now have a Prime subscription, assuming the usual growth rates. at Amazon. Amazon boss Jeff Bezos said last year that the company had more than 200 million Prime customers worldwide. This corresponds to a doubling in three years.

Amazon isn’t the only streaming service to raise its subscription fees. Video provider Netflix had already significantly increased fees for its customers in the United States and Canada in the spring. Usually, a few months later, the price screw is also shot in Germany.

Netflix must finance productions

In particular, complex in-house productions lead to increased costs for Netflix. According to market research firm Ampere Analysis, Netflix will invest more than $230 billion in new content worldwide in 2022 alone. The American company had recently announced a drop in new customers. Netflix is ​​now planning an ad-supported subscription to keep itself financially afloat against rivals such as Disney+ and Amazon Prime.

Sports rights make Sky and DAZN more expensive

Sports-focused streaming services have also become more expensive recently. Sky had already increased its subscription fees for several packages at the start of the year. Entertainment Plus with the Bundesliga now costs 27 euros per month instead of the previous 25 euros. At Sky, investments in transmission technology and more program offerings are responsible for this.

Sky competitor DAZN even increased the cost of a monthly subscription from 14.99 to 29.99 euros in July. DAZN has also invested heavily and outperformed its competitors in the competition for the media rights to broadcast matches of the German Football League (DFL) and the European association UEFA. This has its price for customers.

Source www.tagesschau.de

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