Amazon Prime’s price increase will result in an increase of ~$4B in annual revenue for Amazon

Amazon Prime rates are going up for US Customers on Feb 18th. What that means for Amazon's revenue generated from Prime memberships?

Amazon had ~151.9M US Customers in 2021. And its projected to have ~157.4M by end of 2022. The annual price increase: $119 > $139, will generate an additional $3.8B in revenue

(151.9M @ $119 = $18.07B | 157.4M @ $139 = $21.87B)

But, only half (48%) of subscribers pay annually. 52% of Prime Subscribers in US who pay monthly (with relatively high loyalty – 97%), their rates are increasing from $12.99 to $14.99, resulting in the following numbers:

(78.98M @ $12.99 = $12.31B | 81.85M @ $14.99 = $14.72B)

An increase of $2.41B in revenue from monthly members.

Adjusting the annual numbers a bit. For the annual subscribers (48% of total US customer), the updated numbers look like this:

(72.91M @ $119 = $8.67B | 75.55M @ $139 = $10.50B)

Which would result in an adjusted increase of $1.825B from annual subscribers.

Thus, Amazon will generate an additional $4.235B ($2.41B+$1.825B) in revenue as a result of this price increase.

The higher rates for monthly members, an increase of $24 per year, versus an increase $20 for annual members could see a migration of some monthly members to annual membership.

And, maybe that is what Amazon is trying to accomplish here. Remains to be seen if higher monthly costs will cause monthly subscribers to churn or convert to annual subscribers

TLDR: Same as title, the increase in Amazon Prime prices will result in an increase of ~$4.235B in annual revenue for Amazon from Prime memberships.


Edit: formatting


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