Amazon Prime membership swells 53%
DetailsMichelle Clancy | 05 February 2015
The Amazon Prime Instant Video service logged a 53% increase in membership in 2014.
Amazon, which clocked a 15% increase in net revenue increasing 15% during the fourth quarter to $29.33 billion (and full year revenue that jumped 20% to $88.99 billion), said that the 40 million Prime members spend twice as much on the retail website - about $1,500 annually - as non-subscribers.
"Customers are buying a lot more from us," said Amazon CFO Tom Szkutak on the earnings call, adding that the company invested $1.3 billion in its streaming content in 2014.
He added: "What we see is customers who come in through our Prime pipeline for video for a free trial, those customers are converting at higher rates to other channels. We see that customers that are video streamers, even though we have high renewal rates, they are renewing at even higher rates than others. We see those people who were customers who were streaming have very similar purchase patterns on the physical product side as those who don't."