Image Source: News24
Due to rising operating expenses, Amazon prime will increase the price of its Prime program for UK users. Beginning in September, annual membership will cost £95 instead of £79, and monthly memberships will increase from £1 to £8.99.
Amazon claimed that the price increase—its first in the UK since 2014—was partially a result of the country’s 40-year high inflation rate. However, despite indications that customers are starting to reduce their use of streaming services, other services like Netflix have also raised their monthly prices.
Amazon Prime does provide more than simply a streaming service, though. Additionally, Prime provides limitless merchandise deliveries. Changing to an annual plan or canceling your membership are other options, according to Amazon, which stated that the new pricing would take effect in September or at the customer’s next membership renewal date.
The decision was made at a time when many people were trying to reduce their expenditure since the cost of goods was increasing at the quickest rate in 40 years.
After Amazon raised the costs for Prime in the US in February, retail analyst Natalie Berg, who has published a book about how Amazon will influence the future of buying, said the price increase for Prime was “not really a surprise.”
An earlier poll by the BBC indicated that consumers were reducing their food consumption and driving to save money due to skyrocketing electricity and petrol costs. More than half (56%) of the 4,011 adults surveyed reported making fewer grocery purchases and skipping meals.
According to a recent study, the rising cost of living may be why more individuals are canceling their memberships to streaming services like Netflix, Disney+, and Amazon Prime.
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According to market research company Kantar, 1.66 million services were canceled in the second quarter of 2022, with people under 24 being the most likely to do so.
More than a third of cancellations were ascribed to cost-cutting, with “wanting to save money” listed as the main justification.
Can I lower the cost of my Amazon Prime subscription?
Even if it’s only an extra pound a month, there are several ways to reduce the increase, as everyone is currently trying to restrict their expenditures.
Since most customers subscribe to Amazon Prime monthly, the price increase will go effective in mid-September. However, if you have the money on hand, you can save money by prepaying for a full year’s subscription before that time. By doing that, you will save around £30, which will lock you into the lower pricing until 2023.
Even if you don’t think you’re a member of Prime, it’s a good idea to double-check because it’s simple to accidentally click “join” while making a purchase and become one without even realizing it.
Examine your subscriptions carefully. After facing a lot of pressure, Amazon has made it simpler to identify and use the cancellation process for your monthly Prime membership. They ought to give you a refund even if you had just made a payment for that month. You could even be able to obtain one month for free when re-joining, which would save you £8.99 if you chose to sign up again later.
Consider alternating your TV subscriptions if you have a variety of them. Switch them so you’re only paying for one at a time. For example, perhaps your Christmas fix is with one provider but your summer fling is with another. Instead than paying for each year-round, binge-watch, terminate your membership, and transfer to another provider.
Due to intense competition, users may now find competitive prices and offers in the streaming market. But in 2021 and 2022, Netflix raised the cost of its plans. In addition, it recently disclosed that it lost nearly a million customers between April and July and has now experienced a two-quarter losing streak.
Ms. Berg stated that because the company’s primary feature is free product shipping, Amazon Prime could not be directly compared to Netflix and other streaming services.
According to Amazon, it has recently spent billions of dollars and pounds on original shows, including The Terminal List and Clarkson’s Farm.
Following a successful bid for the license to broadcast Champions League football games on Tuesday nights starting in 2024, it has also entered the sports broadcasting industry.
Twenty Premier League games each season, including the whole round of games played on and around Boxing Day every year, are already exclusively available on Amazon. Additionally, it has a five-year agreement to broadcast the US Open tennis competition exclusively in the UK.
