Amazon announced recently they plan on increasing the price of Amazon Prime by $20 a year.
Several reports have come out over the past few days that suggest people are up in arms about this and will be canceling their Prime subscription come renewal time, stating that a $20 increase is just too much. One survey even reported that over 40% of people that responded to their poll said they plan on cancelling the service.
Related: What is Amazon Prime?
There is absolutely no way this is true.
Amazon Prime, as Bezos has so eloquently put, is a no-brainer for almost everyone. $99 a year, $119 a year, the savings on shipping costs, the 2-day delivery, access to their streaming library and more, it’s hard to pass up on the offering, even as Amazon eats the world alive.
Netflix has announced, almost annually, $1 per month prices increases. Their subscriber numbers continue to climb at a record clip, beating expectations quarter after quarter. Sure at some point the price could be prohibitive of more massive growth, but that is still a long ways off.
Same goes for Amazon. Their Prime service is still, from a financial perspective, under-priced. Will a handful of people cancel? Of course, but just like the above example with Netflix, we fully expect another huge subscriber bump in their next quarterly earnings call. And probably another one after that.
Internet outrage comes fast and quick, and if social media was to be believed, Amazon would be out of business because of all these people angry about them for a price increase. But when that automatic renewal takes place, this will all but be forgotten.