Starting on September 15, users in Europe will experience an Amazon Prime price increase. Just days before the release of its Q2 earnings results, Amazon revealed that the price of its Prime membership subscription in Europe will increase by as much as 43% annually.
Which countries will experience an Amazon Prime price increase?
The company informed customers about the upcoming Amazon Prime price increase through email that starting on September 15 the cost of an annual subscription in the UK would rise by 20% from £79 to £95.
Customers in France will pay an additional 43 percent, going from 49 to 69.90 euros, while German subscribers will pay an additional 30 percent, going from 69 to 89.90 euros annually. The price will increase by 39 percent in both Italy and Spain, from 36 euros to 49.90 euros and 36 euros to 49.90 euros, respectively.
Amazon’s second-largest market after the United States, the UK will experience an Amazon Prime price increase for the first time. Additionally, Amazon is raising the monthly price of Prime in European nations by £1 or €1.
Access to Prime Video, Prime Music, and other Amazon digital platforms and services are all included with an Amazon Prime membership, as well as “free” one-day shipping on Amazon purchases.
According to Reuters, the Amazon Prime price increase is related to “increasing inflation and operating costs,” as well as greater expenditures associated with speedier delivery and content creation for its Prime Video streaming service. On Thursday, the corporation is expected to release second-quarter profits.
Andy Jassy, the CEO of Amazon, has been battling two issues at once: rising expenses and sluggish e-commerce sales. The Covid pandemic growth had caught up with Amazon last quarter, leaving them with an excess of labor and storage space. According to The Wall Street Journal, the business recently halted work on office buildings in Nashville, Tennessee, and the Seattle suburb of Bellevue in order to shed some of that warehouse space.
When members join or next renew on September 15, the modifications go into effect. According to the Reuters report, the price increases are the consequence of higher operating costs, inflation, faster delivery, and more content available for streaming in the affected regions.
Amazon announced its first quarterly loss in seven years in April. The company highlighted challenges such as increased gas prices, greater labor costs, and a loss on its investment in Rivian Automotive.
Not only did Amazon Prime price increase but Disney also increased the cost of its sports streaming service ESPN+ earlier this month. Additionally, Netflix raised its fees earlier this year in a number of areas. If you don’t know what Amazon Prime Gaming is, we have a guide explaining everything in detail.