Image Source: News24
Due to an increase in its operating costs, Amazon prime will increase the cost of its Prime program for UK subscribers. Monthly fees will increase from £1 to £8.99 in September, while annual dues will increase from £79 to £95.
Amazon claimed that part of the reason for the price increase, which was its first in the UK since 2014, was due to the 40-year high in inflation. However, even if there are indicators that customers are starting to use streaming services less, other services like Netflix have raised their monthly costs.
Amazon Prime, however, provides more than just its streaming service. Unlimited goods delivery is also available with Prime. Amazon stated that the new pricing would take effect in September or at the customer’s subsequent membership renewal date and added that customers might also switch to an annual plan or terminate their membership.
As consumer prices are rising at the fastest rate in 40 years, many households are attempting to reduce their spending at this time.
The price increase for Prime was “not really a surprise,” according to retail researcher Natalie Berg, who wrote a book about how Amazon will influence the future of retail. This follows Amazon’s February pricing increase for Prime in the US.
According to a BBC-commissioned survey released earlier this year, people are reducing their food consumption and driving to save money. Of the 4,011 persons surveyed, 56% had cut back on their grocery spending, and a similar percentage had skipped meals.
According to a recent study, the growing cost of living is prompting more consumers to renounce their Netflix, Disney+, and Amazon Prime subscriptions.
According to market research company Kantar, 1.66 million services were canceled in total during the second quarter of 2022, with people under 24 being the most likely to do so.
With cost-cutting accounting for more than a third of cancellations, “wanting to save money” was cited as the main justification.
How to get the most out of your Amazon prime
Even though it’s only an extra pound a month, since everyone is currently trying to cut their budgets, every penny counts. So here are some suggestions on how to combat the increase.
The price increase will begin in mid-September because the majority of Amazon Prime subscribers pay every month. However, if you have the money on hand, you can save money by purchasing a subscription in advance for the entire year. You will save around £30 and be committed to the lower price until 2023.
Even if you believe you aren’t signed up for Prime, it’s a good idea to double-check because it’s simple to accidentally click “join” when making a purchase and subsequently become a member without realizing it.
Read Also: Amazon targets fake review Facebook groups
Examine your subscriptions in great detail. You may cancel your monthly Prime subscription at no cost, and following intense demand, Amazon has made it simpler to locate and access that cancellation process. Even if you recently made a payment for that month, they should refund you. You might even be able to obtain a free month of membership if you decide to sign up again later, saving you that £8.99.
It might be a good idea to rotate your TV subscriptions if you have many. First, change the providers, so you’re only paying for one at a time. Perhaps your summer fling is with one, while your Christmas fix is with another. Instead of paying for each service year-round, binge-watch, terminate your membership, and use a different service.
The fierce rivalry in the streaming market has resulted in aggressive customer discounts and promotions. Netflix did, however, raise the cost of its plans in 2021 and 2022. In addition, it recently disclosed that it had lost roughly a million subscribers between April and July and has now experienced a two-quarter losing streak of subscribers.
Ms. Berg stated that since free product shipping is the company’s primary feature, Amazon Prime could not be directly compared to Netflix and other streaming services.
With original programs like The Terminal List and Clarkson’s Farm, Amazon claimed to have invested billions of dollars in streaming programming in recent years.
After winning the bid to broadcast Champions League football games on Tuesday nights starting in 2024, it has also expanded into sports broadcasting.
The full round of matches on and around Boxing Day every year is already included in Amazon’s exclusive rights to 20 Premier League games each season. Additionally, it has an exclusive five-year broadcasting agreement with the UK for the US Open tennis competition.