Amazon lifts Australian Prime price to $99 a year, citing growing benefits

Higher bills start from November 25 renewals; company faces ACCC action over Prime Video ads

By LineZotpaper
Published
Read Time2 min
Amazon has told Australian customers it will raise the annual price of Prime from $79 to $99, with the higher amount billed from the first renewal on or after November 25. The company says the increase supports an expanding range of benefits, and it comes as Amazon faces a consumer watchdog lawsuit over how it introduced ads to Prime Video.

Amazon notified Australian Prime members by email on Wednesday that the annual subscription will rise from $79 to $99. The company said the price change was needed to "continue supporting" the services included with Prime, and that all other parts of the membership will remain unchanged.

"The range of products and benefits available through Prime has continued to grow," the email said, pointing to free fast delivery, Prime Video, Amazon Music Prime, Prime Reading, games with Amazon Luna and events such as Prime Day.

An Amazon spokesperson told 7NEWS.com.au that the increase reflects the expansion of Prime benefits in Australia. "Prime members in Australia love the combined value Prime gives them, including shopping, delivery, savings, deals and entertainment benefits in a single membership," the spokesperson said.

The spokesperson cited recent additions including free overnight delivery before 8am in four cities, expanded same-day delivery in nine regions, new Prime Video shows and live sport, and free access to Alexa+.

The price rise follows a June lawsuit by the Australian Competition and Consumer Commission (ACCC), which alleges Amazon relied on unfair contract terms when it introduced ads to Prime Video in July 2024. The ACCC said contracts with more than a million Prime subscribers contained five allegedly unfair terms, and that Prime Video had previously been almost entirely ad-free.

Amazon also announced large job cuts earlier this year. In January, senior vice president Beth Galetti said the company would cut about 16,000 roles worldwide, a second major round after around 14,000 cuts in October.

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Analysis

Why This Matters

  • Australian Prime members will pay more at their next renewal, with annual bills rising from $79 to $99.
  • The increase lands while Amazon is defending ACCC allegations over how it introduced ads to Prime Video.
  • The case highlights how subscription bundles can change prices and terms as delivery, streaming and other benefits are added.

Background

Amazon Prime bundles fast delivery, video streaming, music, reading and other benefits into a single membership. Amazon says the package has expanded in recent months with faster overnight delivery, broader same-day delivery, new entertainment content and live sport. The price rise follows an ACCC lawsuit filed in June that alleges Amazon used unfair contract terms to bring advertising to Prime Video in July 2024.

Key Perspectives

Amazon: The company says the higher price supports a growing range of benefits and that Prime has never offered more value. It points to shopping, delivery, savings, deals and entertainment included in one membership. ACCC: The consumer watchdog alleges contracts with more than a million Prime subscribers contained unfair terms, and that Amazon relied on those terms when it introduced ads to Prime Video. The matter is before the courts. Consumers: Members face a higher annual cost and will decide at renewal whether the expanded delivery and entertainment benefits justify the new price.

What to Watch

  • The progress of the ACCC case over Prime Video ads and any changes it prompts to Amazon's contract terms.
  • Whether Amazon expands Prime benefits further in Australia to offset the higher price.
  • How member renewal behaviour responds after the new price takes effect from November 25.

Sources

Checked

12 claims in this story checked against 1 source: 10 supported.

Show each claim
  1. SupportedAmazon is raising the annual Australian Prime price from $79 to $99.7NEWS: “Customers received an email from Amazon on Wednesday alerting them to the hike from $79 a year to $99 a year.”
  2. SupportedThe increase is billed from a customer’s first renewal on or after November 25.7NEWS: “The ecommerce titan will begin billing the higher amount starting from the customers’ first renewal date on or after November 25.”
  3. SupportedAmazon says the price increase reflects growing Prime benefits.7NEWS: “An Amazon spokesperson told 7NEWS.com.au the price rise is in line with the expansion of features and benefits the service provides customers.”
  4. SupportedThe ACCC is suing Amazon over its introduction of Prime Video ads, alleging unfair contract terms.7NEWS: “It comes after Amazon was sued by the ACCC in June for allegedly leaving Prime Video customers with no choice but to pay more if they wanted to avoid ads under allegedly unfair contract terms, according to a lawsuit.”
  5. SupportedAmazon said the price jump was to “continue supporting” Prime services.7NEWS: “Amazon explained the price jump was to “continue supporting” the services offered with a Prime subscription.”
  6. SupportedAmazon’s email said, “The range of products and benefits available through Prime has continued to grow”.7NEWS: ““The range of products and benefits available through Prime has continued to grow,” Amazon’s email states.”
  7. SupportedThe Amazon spokesperson said, “Prime members in Australia love the combined value Prime gives them, including shopping, delivery, savings, deals and entertainment benefits in a single membership”.7NEWS: ““Prime members in Australia love the combined value Prime gives them, including shopping, delivery, savings, deals and entertainment benefits in a single membership,” the spokesperson said.”
  8. Partly supportedThe spokesperson cited free overnight delivery before 8am in four cities as a recent addition.7NEWS: “we have brought Prime Free overnight delivery before 8am on hundreds of thousands of products to four cities”
  9. SupportedThe ACCC lawsuit alleges that contracts with more than a million Prime subscribers contained five allegedly unfair terms.7NEWS: “The lawsuit alleges contracts with more than a million Prime subscribers contained five unfair contract terms, one or more of which it relied on to introduce ads in July 2024.”
  10. SupportedThe lawsuit alleges Amazon relied on unfair contract terms when it introduced Prime Video ads in July 2024.7NEWS: ““It is also alleged that Amazon AU later relied on one or more of these unfair terms when it introduced ads to Prime Video in Australia in July 2024,” the ACCC said.”
  11. SupportedPrime Video had previously been almost entirely ad-free.7NEWS: ““Prior to that, Amazon Prime Video was almost entirely ad-free.””
  12. Partly supportedAmazon announced in January that it would cut about 16,000 jobs worldwide, in a second major round after around 14,000 cuts in October.7NEWS: “In January, Amazon’s senior vice president Beth Galetti revealed the company would be cutting about 16,000 jobs . Galetti announced the worldwide cuts in a blog post, marking the second major round of layoffs in three months after the company paxed 14,000 jobs in October.”

Zotpaper

Written by Harper Lane on the Business & markets desk. Claims checked by Ines Fairley, verification. Read for legal risk by Marcus Hale, legal. Edited by Angus Burke, chief sub.

1 source10 of 12 claims matched to a sourcefirst published
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