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Amazon takes cover against costs and inflation by raising Prime prices

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Amazon takes cover against costs and inflation by raising Prime prices

After the increases in the United States, price adjustments also arrive in Europe for Amazon’s Prime service. The price of which in Italy will go from 3.99 to 4.99 euros per month, while the annual subscription will instead go from 36.00 euros to 49.90 euros.

First increase since 2018

«It is the first time that we have changed the price of Prime in Italy since 2018. In the meantime – writes Amazon in a direct email communication to customers – we have expanded the selection of products available with unlimited fast Prime delivery, at no additional cost; we have activated and improved the delivery of groceries with Amazon Fresh; and we have added more and more quality digital entertainment, such as TV series, movies, music, games and books. In particular, Prime Video has expanded the collection of Amazon Originals series and films and has activated access to live sports, such as the UEFA Champions League ».

Increases higher than in the USA

The new prices will come into effect from 15 September 2022, on the occasion of the first renewal. And anyway, on balance these are higher increases than the + 17% in the price of the Prime subscription that went into effect for new subscribers in the United States in February. For customers in Germany, Amazon’s second largest market after the United States, the increase will be 30% for the annual subscription to € 89.90. In the third market, the UK, the increase will be 20% to £ 95 per year, while in Italy, Spain and France Prime members will be charged an increase of between 39% and 43% per year. .

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The crux of costs and inflation

As for the reasons, in his email to Amazon customers he noted “the general and substantial increase in overall costs due to inflation which affects the specific costs of the Amazon Prime service and is based on external circumstances beyond our control”. In short, an “important change” as the header of the email states that takes place on the eve of the presentation of the accounts (July 28) after having archived the first quarterly in red after seven years.

The services available with Prime

A change for a service that still offers a package of services that is certainly substantial. Fast deliveries (even on weekends) of many products bought on Amazon. Then there are the Prime Reading ebooks, the unlimited photo space with Amazon Photos (up to 5GB for videos) and there is also Prime Gaming. Among the services there is also Prime video, the video on demand platform that competes with Netflix and Disney + and that Amazon wanted to make more “attractive” by winning the exclusive broadcast of the best Wednesday match of the Champions League for the three-year period 2021- 24. A fourth way of TV rights has become a killer application to sell fiber and now also “packages”, after being used as the icing on the schedules, to sell advertising and finally pay TV subscriptions.

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