Amazon (AMZN) Prime Cost Increased by $20
Shares of Amazon.com, Inc. (AMZN) were trading up +3.49 or +0.94 percent to $375.00 per share in pre-market trading on Friday, after the company announced it was raising the cost of its Amazon Prime service by $20 per year from $79 to $99. The cost increase reflects the extra features besides streaming video Amazon is offering with Amazon Prime.
Amazon.com stock closed at $371.51 per share, up +0.87 or +0.23 percent in Thursdayâ s regular trading session.
Seattle, Washington based Amazon.com Inc. is the worldâ s largest online retailer. The company, founded as Cadabra in 1995 by Jeff Bezos was originally started as an online bookstore, but later diversified into DVDs, CDs, software, video games, clothing, toys, food and jewelry. The company also makes consumer electronics products such as the Kindle e-book reader and the Kindle Fire tablet computer. Amazonâ s Prime Service, which offers customers an instant video streaming plan ala Netflix (NFLX
), also gives subscribers free guaranteed two-day delivery on many products offered through Amazonâ s websites. The 25 percent increase in the service came in at the lower end of the range; Amazon announced it would raise the price of the service by as much as $40 six weeks ago. The increase for Amazon Prime reflects higher costs for shows and the companyâ s entry into original content. Earlier this year, Amazon struck deals with entertainment companies to be the exclusive streaming provider for shows such as the MTV series â
Published on Mar 14, 2014
By Jay Hawk