Amazon hikes fees for US monthly subscribers

Online giant Amazon on Friday increased the price of its Prime service for US monthly subscribers which includes access to streaming video and other perks.

The new fee will be $12.99 a month, up from $10.99, but customers may also opt for an annual membership of $99, which is unchanged.

Prime, a major growth driver for Amazon, includes its growing video service but also offers free delivery for many items as well as music streaming, photo storage and other benefits.

For US customers only seeking Amazon video, the cost will be $8.99 a month.

Amazon launched Prime in 2016, with the video service competing against rivals like Netflix, which recently raised its basic prime by one dollar to $10.99 a month.

Hulu, the number three streaming video provider in the United States, costs $7.99 a month, with an ad-free option at $11.99.

Amazon has not revealed details on the number of Prime subscribers but a report by Consumer Intelligence Research Partners (CIRP) estimated it had 90 million in the United States as of September.

Amazon has also been expanding Prime, called Premium in some countries, to other markets around the world.