Amazon Rolls Out New Self-Service Marketplace for Subscription Providers

Jeff Bezos speaking at the new New York Economic Club luncheon in New York on Oct. 27 2016

HBO shows are not leaving the streaming service.

For years, Prime has been an annual subscription program, with a current price of $99 per year.

Meanwhile, Consumer Intelligence Research Partners also estimates that 60 percent of US Amazon customers are Prime members. Netflix has faced a lot of criticism for losing licensing rights to shows like Scrubs, Bob's Burgers, The X-Files, Doctor Who, among others, and they have a much larger inventory than Prime. From the consumer point of view, the new service won't be significantly different to use than Amazon's main site as it will simply serve as a hub for browsing subscription-based products, which should facilitate the process of online shopping, the company said. "While slower growth is expected as it reaches natural limits, Amazon had a surprisingly strong quarter".

For example, Prime members spend an average of $1,300 annually with Amazon, compared to about $700 for non-members, according to CIRP.

Vendors interested in selling through Subscribe with Amazon have access to self-service tools that allow them to create detail pages for their offerings.

That number is up 38% from past year, when the firm estimated that Amazon had 58 million Prime members. But previous year Amazon introduced a monthly subscription plan at a cost of $10.99 as well as a standalone subscription for just its Prime Video service.

That figure represents a membership increase of about 38 percent over a year ago, when CIRP estimated the number of Prime members at 58 million.

Because of that, Wal-Mart (NYSE: WMT), Amazon's closest competitor, dropped its own $50-a-year Prime-like ShippingPass program and now offers free two-day delivery on any qualifying order over $35.

Prime growth may level off and even stop at some point as Amazon saturates the USA market. Of course, $10.99 times 12 equals $133.88, so not paying up front will cost you quite a bit more, but clearly that works for some people. Prime memberships for students runs $49 per year, and comes with a six-month trial.

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