Amazon now lets you subscribe solely to their Prime Video service for $8.99/month. Sounds like a deal, right? Here is a picture of their current signup page. 


Doing the math, for $108/year you can subscribe to Prime Video OR you can pay $9 dollars less ($99/year) for an Amazon Prime membership, which includes 2 day shipping, prime video, ebooks, music sharing, deals and more. The only benefit you receive from choosing to sign up for prime video is that you can cancel at anytime.

Amazon has been heavily investing into their Prime Video service, as they are increasing the amount of original content they produce. Surprisingly, many subscribers are unaware that prime video is even included in their subscription. Now, by unbundling their main package, it strongly encourages customers to pay for the full prime service. 

Why would they offer this if it is really not a deal? - there are few reasons. For one, publicity - anytime a major company changes prices, the media will cover it. This creates that awareness with all their current customers and now future customers who are looking to sign up. Also, by offering Prime Video as a service on its own, customers who pay $9.99 and up for other streaming services (such as Netflix & Hulu) can easily see the tremendous value & benefit that is offered in their Amazon Prime Membership. Does Netflix or Hulu offer Free 2 Day Shipping?

This is a "prime" example of how important pricing correctly is and the value that you can create when you have variations of your product(s) or service(s).




AuthorPer Sjofors
CategoriesBusiness Tips