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After doubling its profits to $1.6B, Amazon announces $20 hike for Prime members

The new prices start next month.

Talk about bad optics.

On the same day that Amazon confirmed a 43 percent quarterly sales increase and a doubling of profit to $1.6 billion – it also confirmed a significant price hike for its Prime members.

The current $99-per-year price will increase by $20, costing $119 for new members as of May 11.

Existing members who renew after June 16 will get the new price.

The reason, it said, is because of the rising cost of meeting its one-and-two-day shipping options.


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The cost of video programming has also been cited as a reason for the hike, which comes after a period in which Amazon has been investing in original programming to compete with the likes of Netflix and Hulu.

When Prime first started in 2005, it cost $75-a-year. It last raised the price – to $99 – in 2014, since when the number of items available for two-day shipping has increased five-fold.

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