July 26, 2022
Amazon July 26 announced it will up the annual price of its Prime membership program as much as 43% across parts of Europe as the costs associated with e-commerce — i.e. shipping — continue to escalate. The price hikes also affect the Prime Video streaming service and other Prime features included with the membership.
The annual membership fee will increase in the U.K. 20% to £95 ($113.80) from £79 ($94.60) on Sept. 15. In France, Prime members will see the annual fee jump 43% to €69.90 ($70.80) from €49 ($49.64). Spain and Italy will see 39% price hikes, while Germany gets a 30% annual fee hike. The price increases follow a 15% increase in the U.S. announced in February.
Amazon has also significantly upped entertainment and live sports spending. In addition to closing its $8.5 billion acquisition of MGM Studios, the streamer is paying the NFL $11 billion for 11 years of exclusive rights to “Thursday Night Football” beginning this season.
Prime Video this month for the first time secured rights to live stream European Champions League soccer matches in the U.K.
Separately, Amazon last week announced it would take delivery of 100,000 Rivian electric vehicles by 2030 for use delivering Amazon packages in Baltimore, Chicago, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle and St. Louis, among other cities. This rollout is just the beginning of what is expected to be thousands of Amazon’s custom electric delivery vehicles in more than 100 cities by the end of this year.
Amazon, which owns a stake in Illinois-based Rivian, took a $7.6 billion loss on that stake in the first quarter, ended March 31.
Amazon is currently the largest single global customer of the Mercedes-Benz Sprinter van used to deliver e-commerce purchases locally nationwide.
Amazon reports second-quarter (ended June 30) financial results on July 28.