On the heels of its latest earnings report, online retail juggernaut Amazon announced a price hike to its massively popular Prime service.
Starting May 11, Amazon Prime's U.S. plan will increase from its current annual cost of $99 to $119 a year for new members, the company today revealed. The announcement was made during Amazon's first quarter earnings call, and the price hike will be used to balance the rising cost of operations. Amazon Prime has 100 million paid subscribers worldwide who enjoy free 2-day shipping alongside bonuses like TV and movie streaming as well as free monthly games via Twitch Prime.
Interestingly enough Amazon's subscription services segment (which includes Prime) raked in a huge $3.1 billion in revenue during the three-month period, up 60% year-over-year. The new $119 price will apply to renewals on or after June 16.