Amazon Prime will hike membership fees for Australian users mirroring recent price hikes by other streaming providers such as Netflix and Disney

Binge watching shows will get more expensive as Amazon Prime reveals it will raise prices for the first time – but will cash-strapped consumers keep paying?

Amazon founder and executive chair Jeff Bezos and Lauren Sanchez pose on the red carpet upon arrival to attend the Global Premiere of "The Lord of the Rings: The Rings of Power" at the Odeon cinema in Leicester Square, central London. "The Lord of the Rings: The Rings of Power," based on the works of J.R.R. Tolkien, had marked the biggest premiere in the history of Prime Video -- with 25 million viewers. (Photo by Niklas HALLE'N / AFP)

Amazon Prime will ratchet up its monthly and annual membership fees for Australian users of its popular online marketplace, entertainment and streaming services, mirroring recent price hikes by other streaming providers such as Netflix and Disney that will pile on cost of living pressures for households.

It comes as consumers are already under pressure from steeper mortgages or higher rents as well as other inflationary pressures lifting prices for general goods and services, with the cost of sitting at home on the couch and binge watching a TV series now to get more expensive too.

The global online retail and entertainment giant Amazon will email its local customer base on Tuesday morning to inform them of the steeper prices for its flagship Amazon Prime package which will lift from $6.99 to $9.99 per month, while the annual membership will increase from $59 to $79.

For new Amazon Prime members the price change will go into effect on May 24, and for current Amazon Prime users the new price structure will apply from June 28 on the date of their next renewal.

This is the first increase in price since Amazon launched Prime in Australia in 2018.

“Prime members love the combination of shopping, savings and entertainment in one membership that Prime provides them, and we are committed to continue investing in and growing the value of Prime,” said Marcos Regalo, head of Prime, Amazon Australia.

“Since launching in 2018, we’ve added more product selection available with fast, free, Prime delivery; launched Prime exclusive deals and discounts; and added more high-quality digital entertainment, including TV, movies, music, and books.”

Nicole Kidman and Keith Urban on the red carpet for the Australian premiere of Amazon Prime’s new film ‘Being The Ricardos’. Picture: Jonathan Ng

Recent local accounts lodged by the US giant Amazon revealed in 2022 it almost doubled its sales in Australia to $2.63bn and is quickly racing to annual revenues of $3bn thanks partly to a boost in the popularity for its subscription service Amazon Prime, fuelled by popular TV dramas such as The Rings of Power which has drawn eyeballs to its streaming service.

Amazon subscription services in Australia generated revenue of $246m in 2022 up from $155.245m in 2021, competing strongly with rival streaming services such as Netflix, Disney and Apple TV.

Amazon Prime members get the added benefits of free delivery services for items bought on Amazon, access to Amazon Prime deals on the Prime Day sales and other services such as music streaming.

The battle for the hearts and wallets of consumers is also being fought through original content with Amazon Prime Video commissioning 25 Amazon Originals in Australia since launch and this year and has tripled the number of Amazon international originals, rolling out new series and movies like The Lord of the Rings: The Rings of Power, The Boys seasons 1-3, Fleabag, The Marvelous Mrs. Maisel and The Wheel of Time.

The Marvelous Mrs. Maisel created by Amy Sherman-Palladino and aired on Amazon Prime Video is among a range of popular Amazon streaming shows.

The lift in pricing for Amazon Prime comes as other streaming services have also raised their own prices, placing further cost of living pressures on Australian households.

Since its launch in March 2015, Netflix has increased the price of their standard tier three times. Since launch, the Netflix standard subscription has increased by $8.

For Disney+ subscribers since it launched in November 2019, Disney+ has increased their price twice with the recent increase in December of 2022 meaning membership now costs $13.99 per month or $14.99 per month Disney+ and OnePass bundle for free delivery across a number of retail brands.

Apple TV, launched in November 2019, has had one price increase of $2 with the subscription now $9.99 per month while for Stan, which launched in January 2015, it has increased the price of its standard tier three times and is now $16 per month up $6 from the original $10 launch price.