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Amazon Prime raises subscription price from £79 to £95

·Finance Reporter, Yahoo Finance UK
·2-min read
Media are seen in front of an Amazon Prime Video logo during an Amazon Prime Video India launch event in Mumbai, India, April 28, 2022. REUTERS/Francis Mascarenhas
Amazon Prime offers free next-day delivery on thousands of items, along with TV and movie streaming and live sport events. Photo: Francis Mascarenhas/Reuters

The price of an Amazon Prime subscription is going up this Thursday in the UK for the first time since 2014.

The streaming service, which has around 13 million subscribers in the UK, will increase the price of Prime from £7.99 each month to £8.99 from September 15 for new customers, with annual membership increasing from £79 to £95 per year in the UK.

New customers will be charged the increased prices on or from Thursday 15 September after their 30-day free trial has expired.

Read more: Amazon Prime Video: Are streaming services worth the cost?

Existing subscribers will be charged the new prices on their first bill on or from 15 September. So if you pay for your Prime membership on the 15th of every month, you'll be charged the new price this Thursday.

Students will see Prime go up in price from £3.99 to £4.49 a month, or £39.49 to £47.49 a year.

Amazon (AMZN) blamed "increased inflation and operating costs" for the move.

"We have increased the number of products available with fast, unlimited Prime delivery, recently added ultra-fast fresh grocery delivery, and have significantly expanded our high-quality digital entertainment, including TV, movies, music, games, and books,” a spokesperson said.

"With increased inflation and operating costs in the UK continuing to rise, we will change the price of Prime,” the spokesperson added.

It comes months after Netflix increased basic and standard plans by £1 a month, while its premium plan was pushed £2 higher, only 18 months after a previous increase.

Amazon Prime gives users benefits such as free next-day delivery, priority access to deals, as well as film, TV and music streaming.

Read more: Cost of living crisis: 10 top tips to save money on subscriptions

Prime's video-only membership price will not change, and neither will Prime add-ons such as Hayu, Paramount+, and StarzPlay.

Amazon has pumped billions of pounds into its streaming content in recent years, with original series such as The Boys and The Terminal List.

Amazon has been increasing its production budget and this month released The Lord Of The Rings: The Rings Of Power series, which cost an estimated £750m in rights and filming costs.

Watch: 'The Rings of Power,' is the most expensive show in television history