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Amazon Hikes Price of Prime Membership Monthly Plan by 18%

Amazon has raised the price of the Prime free-shipping program monthly plan — which includes unlimited access to Prime Video titles — from $10.99 to $12.99 per month, an 18% increase.

However, the annual plan for Prime in the U.S. remains $99 per year, which Amazon last raised in 2014. In addition, Amazon offers a standalone Prime Video subscription option, which is unchanged at $8.99 per month.

The move seems designed to encourage customers to opt for the yearly Prime plan, rather than paying for the month-to-month installment, because that would effectively reduce churn.

For new customers who sign up for the Prime monthly plan, the price change is effective Friday. For existing customers, the $12.99 monthly fee kicks in after Feb. 18. Amazon also offers a free 30-day trial of Prime.

Amazon has never disclosed how many Prime customers it has, although it boasted of signing up 4 million new members over a one-week period in December 2017. As of September 2017, Amazon Prime had about 90 million U.S. members (up 38% from a year earlier), according to estimates by Consumer Intelligence Research Partners.

Prime members receive free shipping of two days or less on more than 100 million products, as well as access to Prime Video and Prime Music streaming, Prime Reading ebooks and other titles, and other perks.

Amazon’s Prime monthly pricing change was first reported by Recode.

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