1. Are customers really upset at the Amazon Prime price increase?
The day after Amazon raised the annual subscription price for its Prime service from $79 to $99, the New York Times ran a story headlined, “Complaints As Amazon Raises Cost of Prime.” I found the reporting lacking and the headline unfair.
I imagine if I were reporting the story, I could find people to quote grousing about the 25 percent increase. Indeed, Times reporter David Streitfeld did it the easy way, going on Amazon’s own customer comments page.
But everyone I’ve talked to who subscribes to Prime — membership not only delivers everything from a book to a flat-screen TV to your doorstep for free, but also provides free movies and TV shows and a free book-lending library — thinks it is a hard-to-believe bargain at $99 or $79. (One happy customer in my office thought the price had gone from $179 to $199.)
Moreover, Amazon’s notice to customers — noting that the price hasn’t gone up in nine years, while all the benefits and product offerings have improved dramatically — was candid and convincing.
But maybe I’m wrong. Which suggests an idea for a more enlightening story than the one the Times did: Someone ought to do a rigorous market survey of Prime customers to see not only whether they like the price increase (who likes price increases?), but whether they will continue to subscribe.