In a long-awaited—and, frankly, long-overdue—move, Amazon will raise the price of its Prime subscription from $99 to $119. Amazon revealed the price increase during a post-earnings conference call with investors last night.
The price change will take place over the next two months. Starting May 11, new Prime subscriptions will cost $119, while existing subscribers won’t see the increase until they renew on or after June 16.
According to Amazon CFO Brian Olsavsky, the price increase was driven in part by the expense of certain Prime perks, including shipping and video streaming. On that latter point, the company has dramatically increased its spending on original video series for its Prime Video offering over the past year.
The price jump will, of course, rankle some. But Amazon doesn’t do this very often: It introduced Prime at an annual cost of $79, and only raised the price once, in 2014, since. It also offers monthly Prime subscriptions for those who find it easier to pay in installments.
Amazon revealed recently that it now has over 100 million Prime members.