Amazon's 100M Prime Subscribers are Big for Streaming Content

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Jeff Bezos

With Prime memberships priced at $99, Amazon clearly has a steady and growing stream of income coming in.

"This year marks the 20th anniversary of our first shareholder letter, and our core values and approach remain unchanged".

Amazon has exceeded 100 million paid Prime subscribers on its platform, Bezos said in the shareholder letter. This includes access to free two-day shipping from Amazon, free and unlimited access to Amazon Prime Video streaming service, access to exclusive lightning deals, etc.

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Amazon boasts more than 560,000 employees and reported a profit previous year of slightly more than US$3 billion.

Time will only tell how many subscribers Amazon Prime will have by this time next year. With its new emerging products such as Appstore, Amazon Echo, Amazon Kindle, Amazon Prime, Amazon Video, Amazon music much needed in the developing internet world, Amazon withholds a strong place in the competitive retail market in the U.S. and many developed and developing countries.

"Unrealistic beliefs on scope - often hidden and undiscussed - kill high standards", Bezos wrote. The service, which costs users £79 in the United Kingdom or $99 in the USA a year, was first launched 13 years ago as a way of fostering customer loyalty.

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A 13-year-old membership program is a vital part of Amazon's business since members tend to spend about twice as much on the website as non-Prime shoppers.

"It has become a golden ticket for Amazon", he said. This lack of hard detail directly from Amazon has meant that analysts in the past had to infer how many Prime members Amazon might have from surveys of customers. Only Apple, at about $900 billion, and Google's corporate parent, at about $745 billion, are now worth more.

The surprise revelation comes in a week that Netflix reported it now has 125 million global subscribers, up from 117.6 million a year ago. However, the Amazon founder is aware that the company needs to work tirelessly to keep customers happy. The timing of this exercise of back-patting is quite curious, as Amazon will be reporting the financials for Q1 in exactly one week.

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