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Bank: Amazon Prime has 65m subs

February 16, 2017

By Chris Forrester

Equity analysts at investment bank Morgan Stanley have looked closely at the quarterly numbers from online retail giant Amazon, and have stripped out the revenues generated from its Amazon Prime film-to-TV subscription fee.

Morgan Stanley say that if they take an average price per subscription of $88 per annum (somewhat less than the fee in the US is $99, UK is £79 annually) from its major global markets, then Amazon Prime enjoys around 65 million subscribers/members. The ‘members’ moniker is important because Amazon Prime also means that users get access to Amazon Prime Video service as well as discounts and speedy delivery of items bought via Amazon.

The bank suggests that today’s 65 million subscribers is up from 45 million in 2015.

Morgan Stanley says there are other benefits flowing to Amazon from ‘Prime’ membership given that they are the most valuable segment of customers for Amazon, with 40 percent of members spending more than $1000 on the site annually.

The report says that Amazon Prime is bringing in about $5.75 billion annually to the overall Amazon pot.

Categories: Articles, Premium, VOD