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Amazon is increasing the annual price of its membership program, Amazon Prime.
Currently, a Prime membership costs $99 per year, but that price will bump up 20 percent to $119 on May 11 for new subscribers, according to Amazon.
Prime members receive benefits such as free two-day shipping on a vast array of products and video streaming.
Prime members “spend almost twice as much on Amazon — $1,300 per year on average — compared to about $700 for non-Prime members,” USA Today reports.
The price change will go into effect June 16 for existing members when their memberships are up for renewal, Amazon says. Company CEO Jeff Bezos recently reported that Prime has more than 100 million paying members.
“This is a better reflection of the cost value of the program,” chief financial officer Brian Olsavsky says of the price change in the USA Today article.
