Prime Video subscribers received unwelcome emails on Tuesday, informing them of the streaming platform’s first price hike since its 2018 launch in Australia.
Amazon will increase the cost of Prime membership from $6.99 per month to $9.99 per month. The annual fee will rise from $59 to $79.
The change will be enforced from May 24 for new customers and June 28 for existing customers, on the date of their next renewal.
Apart from Prime Video, Prime membership includes free delivery on millions of local and international eligible items, as well as subscriptions to Amazon Music Prime, Prime Reading, Prime Gaming and a Twitch channel.
Prime Video fees remain at the lower end of video streaming services, but could stress customers who subscribe to other platforms – many of which lifted prices in 2022.
If Australians wanted to access the content of all the biggest streamers’ using their respective cheapest monthly plans, the cost would total $95.95 per month.
In comparison, a basic Foxtel package costs $64 per month for a 12-month plan.
Prime’s price rise comes after Netflix’s introduction of a cheaper ad-supported tier in November, which was accompanied by a price increase across two of its three other tiers.
Stan recently increased the prices of its standard and premium offerings by almost 15 per cent and 10 per cent respectively, while Disney+ has hiked subscriptions by $2 per month for a monthly subscription, and $20 per year for an annual plan.
Binge increased the price of its standard tier while leaving its basic and premium tiers unchanged, and Apple TV+ (which, like Prime Video, only offers one subscription tier) raised its price by 25 per cent.
Sports streaming platform Kayo also increased its subscription price in 2022.
Finder data shows 66 per cent of Australians subscribe to at least one streaming service with many subscribing to a number, given Australians spend an average of $39 per month on streaming services.
But the rising costs will put pressure on subscribers, as Australians cancelled more than 1.3 million video streaming accounts in the final three months of 2022, with Apple TV+ suffering the biggest cancellation rate at 22 per cent.
Some platforms are partnering with energy and internet companies to form bundles to attract customers.
But for now, Australians are still splashing cash on streaming services.
YouGov research shows Australians are spending about $6 billion a year on streaming services, despite more than 40 per cent of subscribers claiming subscription-based TV “is not good value for money”.
