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Amazon to raise annual Prime subscription to $119

The cost of Amazon Prime is going up.

Amazon is raising the annual cost of its Prime subscription service for U.S. customers to $119 per year, up from $99.

The new pricing will apply to existing members’ renewals starting June 16. Annual Prime members will receive an email with their renewal details in May.

The company’s chief financial officer Brian Olsavsky made the announcement during the company’s financial results call Thursday afternoon.

The 20% increase comes four years after Amazon last raised the annual price of its highly popular Prime program. In 2014 the cost of Prime went from $79 to $99.

Amazon CEO Jeff Bezos said last week in his annual letter to shareholders that the Prime program had more than 100 million paying customers. The number tops recent analyst estimates.

Amazon’s Prime members get free, two-day shipping, access to Amazon Prime Video, online storage and some music and access to a Whole Food rewards program/membership.

Prime subscribers spend almost twice as much on Amazon — $1,300 per year on average — compared to about $700 for non-Prime members, according to Consumer Intelligence Research Partners.

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