Amazon Prime Membership Is About to Get More Expensive Very Soon

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Amazon said it will be increasing its subscription price for Prime in the United States to $119 from May 11. This will go into effect on May 11th for new members and June 16 for existing ones.

The company plans to increase its video content spending this year, Amazon's Olsavsky said, with a prequel to "The Lord of the Rings" in the works. He said Prime added more members in India in its first year than any previous geography in Amazon's history.

Amazon executives said Thursday that the price hike was due to the rising costs of the Prime program, CNN Money reported.

Amazon's revenue received a big lift from the company's acquisition of Whole Foods Markets a year ago.

Though the annual cost remained steady over the past few years, Amazon did increase the monthly cost from $10.99/month to $12.99/month earlier this year. The shares are up about 30 percent so far in 2018.

Internet giant Amazon last night said its quarterly profit more than doubled on soaring revenue from online commerce and cloud services.

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Olsavsky told investors on the call that Amazon's Prime service has grown exponentially since the company first launched it. Analysts on average were expecting US$1.26 per share, according to Thomson Reuters I/B/E/S. The company's physical stores business, most of which is from Whole Foods, added $4.26 billion in revenue for the quarter.

USA Today is reporting that Amazon will soon start charging Prime Members $119 a year. Flipkart has posted billions of dollars in losses while trying to build its business.

Operating income also spiked 92 percent, from $1.0 billion during 2017's Q1 to $1.9 billion this year's Q1.

The company's net income reached $1.6bn for the quarter, or $3.27 per diluted share.

Earlier in the week, Amazon announced it would begin delivering packages straight to certain vehicles parked at homes, offices and other publicly accessible areas.

We'll find out if that winning streak will continue when Amazon reports its first quarter earnings after the bell. The program, initially available to Prime members in 37 cities, is the latest effort by the Seattle-based company to make it easier for customers to receive online orders.