Amazon announced this Tuesday (3) that it will increase Amazon Prime prices in Brazil for the first time since the service was launched in the country. On May 20, the monthly subscription will go from R$9.90 to R$14.90, while the annual subscription will go from R$89 to R$119.
For users who already subscribe to Prime, the new prices will only take effect on June 24, on the subscription renewal date. In addition, customers who purchase the annual subscription until May 19 will still be able to pay the original amount of R$89 for 12 months.
Launched in Brazil in 2019, Amazon Prime is an incentive for consumers to make more purchases on the company’s website, offering free shipping with no minimum purchase value for millions of products available in its stock.
Subscribing to the program also gives access to Prime Video, the company’s movie and series streaming service, and Prime Reading, Prime Gaming and Amazon Music apps, reading services, games and music, respectively.
The readjustment in Brazil occurs at a time of fragility for the retail giant. Last week, Amazon posted a quarterly loss of $3.8 billion, its first negative result since 2015, and the slowest revenue growth in its history, amid falling online retail sales and rising costs.
As justification for the readjustment in the country, Amazon cites expansion of benefits and increase in general operating costs. The company had already promoted a raise in the United States in February, increasing the monthly fee for Americans from US$ 12.99 to US$ 14.99. The annual contract went from $119 to $139.
Prime’s price hike is not an isolated case in streaming. In July last year, Netflix, its main competitor, announced adjustments to all its subscription options, changing its basic plan from R$21.90 per month to R$25.90 and its standard plan of R$32, 90 for BRL 39.90. The monthly premium subscription increased by R$10, from R$45.90 to R$55.90. The company also promoted increases in the United States and Canada in recent months.
On the date of announcement of the adjustment in Brazil, Prime Video came to sting the company, welcoming potential subscribers who would be leaving Netflix after the rise in prices.
Amazon Prime Video has invested in original series and movies to expand its catalog. One of its most successful products, the series “The Boys” premiered in June 2019, has a third season scheduled for June this year and has a spin-off in production.
At the end of last year, the service launched the super production “The Wheel of Time”, a fantasy epic with a strong cast that was even compared to the HBO hit “Game of Thrones”.
Despite the investment, Amazon’s productions are struggling to reach the same level of popularity as competitors’ releases, such as Netflix’s “Stranger Things” and “La Casa de Papel”.
Prime Video’s next big bet, however, is its biggest effort in trying to catch up with the competition since its launch. With a premiere scheduled for September this year, the first season of the series “The Lord of the Rings: The Rings of Power” cost more than US$ 460 million according to the government of New Zealand, where the episodes were recorded, being one of the productions of most expensive TV in history. The first trailer for the series was released in February during the Super Bowl halftime.
In Brazil, the streaming service launched the series “Manhãs de Setembro”, starring singer Liniker, and the reality show “Soltos em Floripa”. In addition, it began broadcasting the 2022 Copa do Brasil.
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