Amazon Prime to Make Estimated $1.58 Billion from 20 Million Subscribers

Amazon recently confirmed that it has more than 20 million subscribers to Amazon Prime, the site’s subscription service that affords customers with free shipping, streaming video

 

Amazon recently confirmed that it has more than 20 million subscribers to Amazon Prime, the site’s subscription service that affords customers with free shipping, streaming video of TV shows and movies, and eBook and print book rentals.

Amazon has historically been very secretive about its member numbers, and this may be the first time the public has gotten an accurate count on their subscriber base. In addition, Amazon confirmed that multiple users in a household are only counted as one subscription since the entire household only paid one $79 subscription fee for the year.

Amazon Prime only offers an annual $79 subscription price, and some quick math leads us to estimate that Amazon is likely to make $1.58 billion from subscriptions this year. Of course, that number can vary according to new acquisitions and cancellations, but still, that’s an impressive subscription revenue stream for a site known for one-off eCommerce sales.

Which just to shows you — consumers are embracing paid subscriptions for digital content, especially when they offer convenience. Granted, Amazon’s foot-in-the-door with subscriptions has been its free two-day shipping, but its digital content offerings, especially its original programming and book rental system for students, is making the service even more a “need” for consumers.

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