Amazon Prime subscriptions “are growing very nicely year over year” despite the company’s move to increase the rate of the annual subscription by $20 to $99/year, the company’s chief financial officer said on Amazon’s earnings conference call.
The company added more Prime subscriptions in the second quarter than it did in the same quarter of last year, said Amazon CFO Tom Szkutak, responding to a question on the call. “We’re very pleased, and we continue to get new subscribers,” he said.
Amazon doesn’t disclose the number of Prime subscribers, but research from Consumer Intelligence Research Partners estimates the number at 27 million. The firm found that the vast majority of Amazon Prime members — more than 90 percent — still planned to renew their membership despite the price increase.
Amazon Prime will also get a boost from the Fire phone, which comes with a free one-year Amazon Prime subscription.
The core Prime feature is free two-day shipping, but Amazon has been adding features such as the recently released Prime Music service, in addition to the Prime Instant Video service and Kindle book lending.
Amazon shares are down more than 5 percent in after-hours trading after the company posted a wider-than-expected loss for the second quarter, despite a 23 percent increase in revenue to more than $19 billion.