Jeff Bezos, founder and CEO of Amazon announced that the company has over one hundred million subscribers to Amazon Prime. Previously, until the hundred million mark was met, Amazon did not disclose the number of subscribers and the public and the stock market were left in the dark.
Amazon Prime offers a variety of different services to customers including free two day shipping on many (but not all) purchases through Amazon’s site, movies and music for download and streaming, and photo storing capabilities. While the service competes with Netflix and other video subscription services, it also appeals to individuals who make a lot of purchases through Amazon.
The cost of Amazon Prime is $99 for an annual membership most (price is discounted for students), which is lower than Netflix and video subscribers. Amazon Prime even creates its own content with hit shows like Phillip K Dicks “The Man in the High Castle” and kids show “If you Give a Mouse a Cookie”. Those shows, and integration with the Echo and Dot Alexa home assistant technology has led to Amazon Prime memberships being more popular than ever.
Amazon noted that the company added more members to Prime in 2017 than in any prior year. Market analysts thought that Amazon had somewhere ranging from 65 to 85 million prime subscribers so the stock rose on the news.
Prime members are big money makers for the company, not solely because of the Amount of the membership subscription. Prime members buy more products from Amazon than other customers and are more locked into the platform for Their products, enhancing the amount earned from product sales and reducing the importance of matching competitor prices.
Amazon has been continually adding incentives and benefits to their Prime membership program with the intention of increasing the number of subscribers. Jeff Bezos has even indicated that he wants the benefits of using Amazon Prime to be so beneficial to users that it is financially irresponsible to not use it. Despite the increase in the number of subscribers, there are still less Amazon subscribers than HBO and Netflix which average among 125 million or so the two services. Amazon Prime is growing though and is larger than the competing Apple and Spotify, and priced more affordably as well.