Image Source: News24
As a result of rising operating costs, Amazon prime will increase the cost of its Prime program for UK subscribers. The annual membership fee will increase from £79 to £95 starting in September, while monthly memberships will increase from £1 to £8.99.
The price increase, which Amazon announced as its first in the UK since 2014, was partially attributed to the country’s 40-year high inflation rate. Despite indicators that consumers are starting to reduce their use of streaming services, other firms like Netflix have also raised their monthly prices.
The streaming service is not the only thing Amazon Prime provides. In addition, Prime offers limitless merchandise deliveries. The customer’s next membership renewal date, or September, would be the start of the new pricing, according to Amazon. The company also indicated that customers could move to an annual plan or terminate their membership.
With prices for items rising at the quickest rate in 40 years, the move comes when many households attempt to reduce expenditure.
After raising its costs for Prime in the US in February, retail analyst Natalie Berg, who is the author of a book about how Amazon will change the way we shop, claimed that the price increase for Prime was “not really a surprise.”
A BBC-commissioned survey earlier this year revealed that consumers were reducing their food consumption and driving to save money due to the skyrocketing energy and gasoline costs. The 4,011 respondents surveyed revealed that the same number had skipped meals, and more than half (56%) had purchased fewer goods.
According to a recent study, the rising cost of living may be why more individuals are canceling their memberships to video streaming services like Netflix, Disney+, and Amazon Prime.
According to market research company Kantar, 1.66 million services were canceled in the second quarter of 2022, with people under the age of 24 being the most likely to do so.
With “wanting to save money” cited as the main justification for cancellations, cost-cutting initiatives accounted for more than one-third of all decisions.
Does Amazon Prime offer subscription discounts?
Although it may only be an extra pound a month, because everyone is currently trying to reduce their finances, every pound counts. So here are some suggestions on how to combat the increase.
Most Amazon Prime subscribers pay monthly, so the price increase will take effect in the middle of September. However, if you have the money available, you can save money by prepaying for a full year’s subscription before that time. In addition to saving you around £30, this will lock you into the lower price until 2023.
Even if you believe you aren’t a member of Prime, it’s a good idea to double-check because it’s simple to accidentally click “join” when making a purchase and get added to the service without your knowledge.
Consider your subscriptions with great care. Your monthly Prime subscription can be canceled at any time without incurring fees, and Amazon has made it simpler to identify and access that cancellation process due to intense demand. Even if you have recently made a payment for that month, they should still issue a refund. You might even be able to earn a free month upon re-joining, saving you that £8.99 if you decide to sign up again later.
If you have a few, it might be worth considering alternating your TV subscriptions. Change the providers so you’re only paying for one at a time. Perhaps you get your Christmas fix from one but your summer lust from another. Watch on a binge-watching binge, cancel your membership, and switch to a different provider rather than paying for each year-round.
Competitive pricing and offers for customers are the results of the streaming industry’s intense competition. In 2021 and 2022, however, Netflix raised the cost of its plans. In addition, a recent announcement stated that it had lost nearly a million customers between April and July, adding that this was the second consecutive quarter that subscribers had left.
Amazon Prime’s primary benefit is free product shipping; according to Ms. Berg, thus it cannot be directly compared to Netflix and other streaming services.
The Terminal List and Clarkson’s Farm are just two examples of the original programs that Amazon claimed to have invested billions of dollars in recently.
After winning the auction to show Tuesday night Champions League football matches beginning in 2024, it has also entered the sports broadcasting industry.
Currently, Amazon holds the exclusive rights to 20 Premier League games every season, including the complete slate of games that take place on and around Boxing Day each year. Additionally, a five-year agreement has been made for it to broadcast the US Open tennis competition in the UK exclusively.