Amazon Prime Memberships, the new normal
Amazon Prime is mutually beneficial. Everyone knows Amazon Prime comes with free two-day shipping but the deal gets sweeter with access to a whole host of other content and offerings including:
- Unlimited streaming of movies and TV shows (HD, Ultra HD & HDR video when available)
- On-demand, ad-free music streaming
- Unlimited listening to original audio series
- Free unlimited photo storage
- Free Same-Day Delivery in eligible areas
Amazon offsets the cost of these items by collecting a fee for the service but the real payoff is in the increased revenue from these increasingly active customers.
I use less than half of the offered items above and still feel like the Prime membership is worth it's "price of admission". But based on a recent study from Statista, Amazon is still coming out ahead. The study indicates that over the course of a year, an average Prime customer is projected to spend $600 more than a non-Prime member.
As the macro trends continue to shift towards doing it all online, and overall online revenue increases the relative difference between these groups will widen and the personal decision to join Prime or other offerings like it will become a no-brainer.
Time will tell but Amazon stock may still be cheap…