Recode: Amazon increasing monthly Prime cost by 18%

Recode: Amazon increasing monthly Prime cost by 18%

Recode: Amazon increasing monthly Prime cost by 18%

Well, the price comes in after a free 30-day trial, or six-month trial if you're a student.

There's good news, however.

Amazon isn't raising the $99 annual fee for Prime membership so this appears to be a drive to push customers onto the yearly tier.

While no likes to see a price hike, we do have one thought in defense of a monthly subscription to Prime vs.an annual subscription: Going monthly allows you to jump in and out of the program at will.

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Meanwhile, the discounted Prime Student monthly plan is being raised form $5.49 to $6.49. The fee of $99 for an annual membership will not change, the company said Friday.

Amazon Prime, with its free, two-day delivery service on almost everything that Amazon sells, as well as unlimited streaming of TV shows and movies via Prime Video, has been one of Amazon's most-successful e-commerce options in the company's history.

Amazon Prime memberships are a crucial part of the company's ecommerce empire because they represent loyal customers who spend the most on its platforms.

Amazon originally set up its Prime subscription service on an annual plan. The company also offers a Prime Video-only subscription for $8.99 per month.

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Amazon introduced the monthly Prime plan in the USA in early 2016 as an alternative to the relatively high cost of its annual fee, which it raised from $79 to $99 in early 2014. Consider it a 33% discount, which is undoubtedly exactly what Amazon is hoping you'll think of it as.

Amazon's monthly plan for Prime was introduced less than two years ago. The new rates will kick in starting February 18, 2018. The online retailer isn't even giving subscribers any warning because the price increase goes into effect immediately.

You also get ad-free viewing, an exclusive chat badge and a monthly subscription to Twitch as part of your Prime membership.

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