Amazon Prime's Cost is Peanuts Compared to its Value
On its quarterly earnings call, Amazon announced that the company will raise the annual price for its Prime membership by 20 dollars this May. But as a study by JPMorgan finds, Jeff Bezos could spiral prices up even further as the investment bank estimated the value of the whole Prime product at 784 dollars per service year. By comparing all the sub-products of a Prime membership to similar offerings from competitors, JP found that Amazon is selling its premium product under value. Whilst music streaming services like Spotify, Tidal or Apple Music charge their customers around 9.99 dollars per month, Prime Music alone is estimated to be worth some 4.99 dollars per month which would equal half of the price of a Prime membership.
Junior Data Journalist
This chart shows the estimated annual value of Amazon Prime Services.
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