PREMIUM SERVICE Amazon Prime is getting a price hike in the US.
Amazon Prime, which includes expedited package shipping of Amazon products, a movie and TV media streaming service and a lending library of Kindle books, will go up in price from $79 to $99 next week.
Although there had been talk of a price rise, the first since the service began nine years ago, Amazon had not announced the amount or the timing of the price increase.
The world's smallest violins sounded as Amazon told its customers on Thursday, "Even as fuel and transportation costs have increased, the price of [Amazon] Prime has remained the same for nine years." It went on to compare statistics on the service then and now to justify the price increase.
However, even as fuel and transportation costs increased, Amazon's quarterly revenues grew 20 percent in the last quarter of 2013, according to Forbes.
The move echoes the price rise for British customers that Amazon announced recently as folded its Lovefilm streaming service that it bought in 2011 into Amazon Prime to create an equivalent to the US service. As a result it increased the price of Amazon Prime in the UK from £49 to £79.
As with the UK, American customers have a week long window to lock in their renewals early to secure a further year at the old price. It's not known if Amazon plans to use the additional revenue to fund its army of delivery drones after a recent court ruling suggested that such a service might even be legal. µ
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Xbox One price of Microsoft-owned game stays the same
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