Even for $70 a year, Amazon Prime is super profitable

Amazon increases the price of the Prime subscription at the beginning of the school year. If the increase is significant (+ 42%!), we must not forget the richness of the offer.

Amazon Prime subscribers received what appears to be bad news by email on the night of July 25-26. The price of their subscription will increase from September 15: from € 5.99 to € 6.99 for the monthly offer (+ 17%) and from € 49 to € 69.90 for the annual subscription (+ 42%). It also concerns the student offer, with an increase from 2.99 to 3.49 € or from 24 to 34.95 €.

For some, this increase means only one thing: a cancellation, in pure and hard form, prompted by a complicated economic situation for many (everything is increasing). Nevertheless, we must not forget that Amazon Prime remains a formidable “bundle”, bringing together a large number of services at an unbeatable value for money. Especially when we compare it to what the competition has to offer in all areas covered by Prime (e-commerce, SVOD, gaming, etc.).

Reminder of the services offered in Amazon Prime

As a reminder, with Amazon Prime you can take advantage of: :

  • Free delivery within one business day;
  • Access to a disk (also for photos);
  • Prime Video (Netflix competitor);
  • Prime Gaming (every month, free games);
  • Prime Music (music catalog, with limits);
  • Prime Reading (ebooks);
  • Exclusive Promotions;
  • One-time benefits (Nintendo Switch Online, Deliveroo Plus)

All this, without forgetting the possibility of sharing certain services. You can easily leave your Amazon credentials with a family member.

for further

Delivery: Amazon Prime vs Fnac and Cdiscount

Free one-day delivery is not a service exclusive to Amazon, which remains primarily an e-commerce site. Its rivals also offer subscriptions to receive purchases faster. Cdiscount at will costs €29 per year, while Fnac+ pays €14.99 per year (€9.99 the first year).

This comparison is not in favor of Amazon Prime. But the subscription offers much more bonuses than those of Fnac and Cdiscount. Translation: Prime is less profitable if you only subscribe to delivery (although some still prefer the Amazon catalog, which affects more categories than the two rivals mentioned above).

Amazon Prime
Amazon Prime // Source: Amazon

Streaming: Amazon Prime Video against Netflix, Disney+, Apple TV+ and Canal+

Access to an SVOD platform is Amazon Prime’s other main selling point – besides next day delivery. Especially since the catalog keeps getting better over time as the multinational multiplies the investment to provide subscribers with quality content (best example: The Lord of the Rings series). Amazon also invests heavily in France and has produced very popular content (LOL smiling comes out, documentaries about Orelsan or Paul Pogba, One Man Show, Roland Garros…)

In terms of prices, Amazon Prime is among the lowest on the market, as evidenced by this comparison chart :

monthly price Monthly price (annual option) Maximum number of screens
Amazon monthly price€ 6.99 Monthly price (annual option)5.8 € Maximum number of screens3
Amazon (student offer) monthly price€3.49 Monthly price (annual option)2.9 € Maximum number of screens3
netflix monthly priceFrom 8.99 to 17.99 € Monthly price (annual option) Maximum number of screens4
Disney+ monthly price€8.99 Monthly price (annual option)€7.49 Maximum number of screens4
Apple TV+ monthly price€4.99 Monthly price (annual option) Maximum number of screens1
Channel+ monthly price€20.99 Monthly price (annual option) Maximum number of screens1

This table shows that Prime Video is at the lower end of the price range – bearing in mind that its competitors don’t have that much to offer. In summary, even subscribing to Prime only for SVOD is not a scam at all.

lord_of_the_rings_posters2
Rings of Power posters // Source: Prime Video

Games: Amazon Prime vs Xbox Live Gold and PlayStation Plus

You may not know it, but the Prime plan also includes a Gaming component. And it shouldn’t be overlooked, as it allows you to restore PC games every month without paying anything – among other more negligible bonuses. You might think that the securities on offer are not interesting. It’s the exact opposite: sometimes you can get really big productions (for example: the Mass Effect trilogy in July).

Xbox Live Gold ($6.99 per month) and PlayStation Plus Essential ($8.99 per month) also offer games at similar prices. But without the other essential Prime bonuses.

Amazon Prime remains affordable, but let’s not forget why

In short, we’ll find it hard to criticize Amazon Prime’s new price, even if the timing of the announcement isn’t the best. The previous price, which dates from 2005, did not really make sense anymore in 2022, at a time of multiplication of services. Amazon Prime costs double ($139 in the US) in some countries, so it’s no wonder we’re seeing more offerings in Europe (Germany and the UK will pay more than us).

Of course, it’s also good to remember that the Prime offering for Amazon is a great way to lock yourself into its ecosystem. The offer may be one of the most profitable on the market, but it is there to make you dependent on the American giant. An important point to consider before subscribing to it.

Source: Numerama Edit

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