Even at 70 euros a year, Amazon Prime is super profitable

Amazon will raise the price of the Prime subscription at the start of the school year. If the increase is significant (+ 42%!), we must not forget the richness of the offer.

Amazon Prime subscribers received what looks like bad news via email on the night of July 25-26. The price of their subscription will increase from September 15: from €5.99 to €6.99 for the monthly offer (+ 17%) and from €49 to €69.90 for the annual plan (+ 42%). The student offer is also concerned, with an increase from €2.99 to €3.49 or from €24 to €34.95.

For some, this increase means only one thing: a cancellation, in pure and hard form, motivated by a complicated financial situation for many (everything is increasing). Nevertheless, we should not forget that Amazon Prime remains a formidable “bundle” that brings together a wealth of services at an unbeatable ratio between quality and price. Especially if we compare it to what the competition offers in all areas covered by Prime (e-commerce, SVOD, gaming, etc.).

Reminder of the services offered in Amazon Prime

As a reminder, Amazon Prime allows you to take advantage of :

  • Free delivery within one working day;
  • Access to a drive (including to images);
  • Prime Video (competitor to Netflix);
  • Prime Gaming (monthly, free games);
  • Prime Music (music catalog, with restrictions);
  • Prime Reading (e-books);
  • Exclusive promotions;
  • One-off benefits (Nintendo Switch Online, Deliveroo Plus)

All this without forgetting the possibility of sharing certain services. You can easily leave your Amazon credentials with a family member.

Further

Delivery: Amazon Prime against Fnac and Cdiscount

Free one-day delivery is not a service exclusive to Amazon, which remains first and foremost an e-commerce site. Its rivals also offer subscriptions to receive purchases faster. C-rebate costs €29 per year, while Fnac+ is charged €14.99 per year (€9.99 the first year).

This comparison is not in favor of Amazon Prime. But the subscription gives many more bonuses than Fnac and Cdiscount. Translation: Prime is less profitable if you only subscribe to delivery (although some will still prefer Amazon’s catalog, which affects more categories than the two rivals mentioned above).

Amazon Prime
Amazon Prime // Source: Amazon

Streaming: Amazon Prime Video vs Netflix, Disney+, Apple TV+ and Canal+

Access to an SVOD platform is Amazon Prime’s other main selling point – along with next-day delivery. Especially as the catalog continues to improve over time as the multinational multiplies investments to offer subscribers quality content (best example: The Lord of the Rings series). Amazon also makes many investments in France and has produced very popular content (LOL laughing comes out, documentaries about Orelsan or Paul Pogba, One Man Show, Roland Garros…)

In terms of price, Amazon Prime is among the lowest on the market, as can be seen from this comparison table :

monthly price Monthly price (annual option) Maximum number of screens
Amazon monthly price€6.99 Monthly price (annual option)€5.8 Maximum number of screens3
Amazon (Student Offer) monthly price€3.49 Monthly price (annual option)€2.9 Maximum number of screens3
Netflix monthly priceFrom €8.99 to €17.99 Monthly price (annual option) Maximum number of screens4
Disney+ monthly price€8.99 Monthly price (annual option)€7.49 Maximum number of screens4
Apple TV+ monthly price€4.99 Monthly price (annual option) Maximum number of screens1
Canal+ monthly price€20.99 Monthly price (annual option) Maximum number of screens1

This table shows that Prime Video is at the lower end of the price range – considering that the competition doesn’t have much to offer. In summary, even if you only subscribe to Prime for SVOD, it’s not a scam at all.

Lord of the Rings posters2
Rings of Power Posters // Source: Prime Video

Game: Amazon Prime vs. Xbox Live Gold and PlayStation Plus

You might not know it, but the Prime subscription also includes a Gaming component. And it should not be overlooked, as every month it allows you to restore PC games without paying anything – among other more insignificant bonuses. One might think that the offered securities are not interesting. It’s quite the opposite: sometimes you can get really big productions (example: the Mass Effect trilogy in July).

Xbox Live Gold ($6.99 per month) and PlayStation Plus Essential ($8.99 per month) also offer games at similar prices. But without the other essential Prime bonuses.

Amazon Prime remains affordable, but let’s not forget why

In short, we will find it difficult to criticize the new price of Amazon Prime, even if the timing of the announcement is not the best. The previous price, which dates back to 2005, no longer really made sense in 2022, at a time of multiplication of services. Amazon Prime costs twice as much in some countries ($139 in the US), so it’s no wonder we see more supply in Europe (Germany and the UK will pay more than us).

Of course, it’s also good to remember that for Amazon, its Prime offering is a great way to lock you into its ecosystem. The offer may be one of the most profitable on the market, but it is there to make you dependent on the American giant. An important point to consider before subscribing to it.

Source: Numerama edit

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