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BusinessApr 17, 2024

Amazon’s good year gets better as Prime memberships rise

Subscription Strategy

A.M. Steinbach

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The e-commerce giant’s huge pile of cash is getting bigger, as Amazon Prime memberships hit a new high in March, marking an 8% increase from the year before — despite recent changes that may have alienated some customers. This surge means Amazon will have generated $10.8B in subscription revenue for the first quarter, a 12% uptick.

Last year, Amazon upped the free shipping threshold for non-Prime members, possibly nudging some towards subscription.
Including live sports on Prime Video has spurred growth, with viewership for Amazon’s Thursday night NFL games soaring 24% last season compared to the season before.

Global ambitions: Prime doesn’t just bring in subscription revenue — surveys show Prime members tend to spend more than non-Prime members. But if Amazon’s going to increase its Prime subscriber base, it still has work to do overseas. That’s why analysts are watching India — where a major investment in India-centric content on Prime Video has made it Amazon’s fastest-growing market outside of the US.