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]