Chicago — Consumers reportedly are not willing to pay higher fees for Amazon Prime subscription service. According to the Wall Street Journal, a recent survey of 300 current Amazon Prime members from research firm Consumer Intelligence Research Partners indicates fewer than half of members would renew their subscription at a higher cost.
At a $99 price point, fewer than half of Amazon Prime members said they would “definitely” or “probably” renew, and that percentage dropped to 40% when the price jumped to $119. Amazon currently charges $79 for a yearly subscription to Amazon Prime, which includes free two-day shipping, a streaming video service and a digital Kindle library.
In January, Amazon said it might raise the annual fee for Amazon Prime by $20 to $40, although no timetable was released. The main rationale for potentially raising the cost of Amazon Prime is reportedly that it has not changed since the program launched in 2005 and fuel and shipping costs have gone up significantly.
The news for Amazon Prime is not all bad, however. The survey also showed that 94% of Amazon Prime members said they will “definitely” or “probably” renew at current rates, and 100% of members who use the Amazon Prime streaming video service at least once a week also will definitely or probably renew if the price does not rise.