Amazon raises the price of Prime in Spain by 39% to 49.9 euros per year and blames inflation

Amazon will raise its Amazon Prime service rates in Spain by 38.6% as of September 15, due to the increase in its operating costs. The price will go from the current 36 euros per year to 49.90 euros. In the case of the monthly rate, this will increase by 25%, from 3.99 to 4.99 euros, as reported by the e-commerce giant to its subscribers this morning via email.

The rise, which comes several months after it raised rates for its US customers, will affect the multinational’s main European markets. Thus in Germany, its largest market outside the US, the price of the Amazon Prime rate will increase by 30%, while in France it will rise by 43% and in the United Kingdom, by 20%. In Italy, the rise is 39%.

“The reasons for this change are due to the general and material increase in spending levels due to the increase in inflation that affects the specific costs of the Prime service in Spain and are due to external circumstances that do not depend on Amazon,” he said. the company said.

Amazon also refers to clause 5 of the terms and conditions of use, where it includes the possibility of executing these increases in subscriptions and reminds users that the new price will apply to renewals made after the next 15th of September.

This is the second rise of Amazon Prime in Spain since it began offering this service in the country, which in addition to fast and free shipping, includes music service (Amazon Music), access to series and movies (Amazon Prime Video), books (Prime Reading), offers or a free subscription to Twitch, among others. Amazon made its first increase in the Prime service in Spain in 2018, when it went from costing 19 euros per year to 36 euros per year. In other countries, such as the United Kingdom, this is the first increase in the service since 2014.

The company has assured that it will continue working to ensure that Prime “offers exceptional value” to subscribers. But the measure comes at a time when many households want to cut costs, due to the rise in the price of many products.

According to the BBC, recent studies suggest that more and more people are canceling subscriptions to Internet services. streaming such as Netflix, Disney+ and Amazon Prime, due to the rising cost of living. A total of 1.66 million services were terminated in the second quarter of 2022, according to Kantar, with the under-24 age group being the most likely to cancel. More than a third attributed the cancellations to “wanting to save costs”.

Amazon has explained that it has invested billions of euros in content in recent years, with original series such as The Terminal List or Clarkson’s Farm. It has also entered sports broadcasting, having successfully bid for broadcast rights to Tuesday night Champions League football matches from 2024.

The internet giant already has the exclusive rights to 20 Premier League matches per season, and has a five-year deal to exclusively broadcast the US Open tennis in the UK, for example.

In addition, Amazon posted its first quarterly loss in seven years in April on headwinds that include higher wages and rising fuel costs. It has also seen the value of its Rivian Automotive stake fall significantly. The company, which saw its business strongly boosted by the pandemic, has launched a cost reduction program. It has halted hiring at some logistics warehouses and halted construction of major office space in Bellevue, Washington. Likewise, it has slowed down the openings of logistics centers, reports Reuters.

The company has also raised prices for some businesses that sell through its platform. In May, Amazon imposed an average 4.3% fuel and inflation surcharge on sellers using its logistics in major European markets, after making a similar move in the US.

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