A survey of Amazon Prime members shows the vast majority plan on renewing their subscriptions, but that number drops quickly when a price rise enters the picture. We reached out to Amazon to see what they have to say about all this, and will update the story if we hear back. Analysts at UBS, which partnered with CIRP on the survey announced today, said in a note this morning they were “negatively surprised” by the results:
Our survey results call into question our prior views about the value that a broad set of consumers are applying to the current iteration of Amazon Prime. If Amazon were to raise Prime fees, such a fee increase might need to be accompanied by either a) a higher level of value in the service offering (additional media content, streaming music and/or Fresh (supermarket) offerings) and/or b) an increased level of marketing around the perceived value of Prime to the general public.
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