So by now Im sure everyone has heard that Prime is now $120, up from $100. Recently, Jeff Bezos touted that concurrent Prime subscriber base has passed 100 Million. Their reason for the price hike is because the $100 price point was no longer sustainable because of the influx of eligible 2-Day free shipping item catalog on Amazon.
But let's look at the numbers real quick. Let's multiply $100 across 100 million people paying for the service - which Amazon sees 100% of. The total revenue that Prime generates from it's 100 million subscribers is $10 Billion dollars a year...
So it begs the question: is Prime 'really' unsustainable at that annual revenue? Or is this another case of textbook corporate greed? I'm gonna go with greed.
Your thoughts?
