Amazon Prime plans to increase the price of its Prime service in the UK because of rising operating costs. Amazon Prime Monthly subscriptions will rise from September to PS1.99 to PS8.99, while annual memberships will rise from PS79 and PS95.
Amazon stated that the UK’s first price rise since 2014 was partly due to inflation. Inflation is at a 40-year peak. Netflix has also raised subscription prices despite indications that users are cutting back on streaming services. Amazon Prime does more than offer streaming. Prime allows for unlimited product delivery.
Amazon announced that the new pricing would start in September or at the customer’s next renewal date. They also stated that it was possible to switch to an annual plan, cancel your membership, and so forth. The decision comes at a time when many households are trying to cut down on their spending. With the price of goods increasing at the fastest rate in 40 years, this is a good time to do so.
Natalie Berg, a retail analyst who wrote a book about Amazon’s future plans for shopping, stated that the Prime price hike was not unexpected after Amazon increased Prime prices in the US. She said that it was an extremely bold decision to raise fees in the middle of the worst economic crisis of our generation. However, Amazon is crucial to many shoppers and they [the firm] know this,” she stated to the BBC.
“Amazon has become so deeply integrated into our daily life that many people will agree to the hike.”
Amazon price matches Tesco grocery customer war
Amazon targets 10,000 phony reviews Facebook groups
Amazon to 4,000 new UK jobs
An earlier survey by BBC revealed that many people are struggling with rising energy costs and high fuel prices. They have cut back on their food and car travels to save money. More than half of the 4,011 individuals surveyed had reduced their grocery shopping and had eaten less.
Recent research shows that consumers are abandoning video streaming subscriptions such as Netflix, Disney+, or Amazon Prime because of rising living costs. Kantar Market Research reported that 1.66 Million services were discontinued in the second quarter of 2022. This was mainly due to the fact that under-24s are most likely not to cancel.
A majority of cancellations can be attributed in part to cutting costs. The primary reason was “wanting money”.
Is it possible to save money with my subscription?
While it may only add a pound to your monthly budget, every pound matters. Here are some ideas to help you beat this rise. Amazon Prime will increase in price from mid-September as most people pay monthly. You can save if you have enough cash to pay upfront for a full-year subscription. You will be locked in at a discounted price through 2023, which will save you approximately PS30.
It is worthwhile to check if your Prime account has been activated. It’s worth taking a close look at your subscriptions. Amazon makes it easy to cancel your Prime membership. If you haven’t paid for the month yet, Amazon will likely refund your money. A PS8.99 discount might apply if you sign-up again later.
It’s worth considering rotating TV subscriptions if you have several. You might find your Christmas fix with one provider, but your summer love with another. Switch them so that you only pay one. Do some sleuthing, then cancel your membership and switch to another provider instead of spending for each one all year.
High competition in streaming has led to low prices and attractive offers for customers. Netflix raised the price of its plans for 2021 and 2022. It has announced that it lost almost a quarter of a million subscribers between July and April. Now, it has lost members for two consecutive quarters.
Ms. Berg stated that Amazon Prime was not directly comparable to Netflix or other streaming services, as the brand’s main service is free shipping of products.
“Amazon has more stickiness thanks to the shopping element,” she stated.
Amazon stated that it had invested billions in streaming content in recent times, with original series such as The Terminal List as well as Clarkson’s Farm. It also entered sports broadcasting after bidding for the rights in 2024 to show Tuesday night Champions League football matches.
Amazon already holds the exclusive rights for 20 Premier League matches per year, which includes all of the matches around Boxing Day each Year. Amazon also has a 5-year agreement to exclusively broadcast the US Open tennis tournament.