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That was pretty fast. Amazon has abandoned testing of a $7.99 monthly membership to its Prime program. In addition to free two-day shipping, Prime members enjoy access to Amazon’s Instant Video service, which features about 30,000 television shows and movies.

Amazon CEO Jeff Bezos summed up the test discontinuation thusly:

“We regularly test new options for our customers . . . At this time, we’ve completed our test and are no longer signing up new customers for Amazon Prime monthly memberships.”

The $7.99 per month test matched the prices offered by Amazon streaming competitors Netflix and Hulu Plus. Customers who chose to pay for the service monthly rather than annually paid a 21 percent premium.

Why do you think Amazon called off this test so quickly? Did too many people do the math on a monthly versus a yearly Prime subscription? Was Amazon’s content offering not compelling enough against Netflix and Hulu Plus? Speculate now in the comments.

[via Home Media Magazine]

6 Responses to “Amazon Ends Monthly Prime Subscription Test”

  1. Member [Join Now]
    Danofive0 [danofive0]

    Simple. It did not work. Three things.
    1. NetFlix is way, way better the Amazon.
    2. NetFlix has all kinds of Movies and TV shows with Closed Caption on them.
    For the Hard Of Hearing.
    3. Amazom has a long long way to go to get up to speed with NetFlix.
    Amazon was not making any money on this. That simple..
    I will keep my NetFlix online and my Block Buster three out at a time.
    All for under $30.00 a month. Works for me!

  2. Member [Join Now]

    Amazon Prime’s streaming can’t compete with Netflix or Hulu Plus. They don’t offer enough new content and their streaming capabilities are abismal. The only reason to do Amazon Prime monthly is if you buy a lot of stuff and need immediate gratification.

  3. Visitor [Join Now]
    Dean [visitor]

    I think Amazon finally did the math and realized a lot of people would sign up during the holiday buying season to take advantage of free two-day shipping and cancel afterwards.

  4. Visitor [Join Now]
    Jamie [visitor]

    Dean nailed it. Why they did the test at holiday season was a little odd because everyone is going to sign up for 30 days, get all their gifts shipped for free and then quit.

  5. Visitor [Join Now]
    sherry [visitor]

    Why didn’t it work? Try less-than-stellar program choices. It’s supposed give you free viewing – but NEARLY EVERYTHING we wanted to watch was going to cost us $1.99 to $3.99 per viewing. It’s also supposed to let you read a free ebook a month, but when you really read the small print that’s only if you own certain devices – not if you’ve got an ebook reader on your computer. Amazon Prime is, in my opinion, a TOTAL RIPOFF! We buy alot of books & so the free shipping may make the yearly subscription worthwhile (probably not, but since I was sick at the end of my free trial and forgot to cancel it, I’m stuck for the year). All I can do is warn others away from the Prime membership and I’m doing that anytime I find the appropriate venue.

  6. Visitor [Join Now]
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