Over the past year I’ve written several times about my dissatisfaction with Amazon’s arbitrary decision to offer “free” video steaming while at the same time increasing the cost of the Prime service to £79 a year. I’ve argued, quite rightly I think, that the original Prime service should have remained at £49 while anyone wanting video services or book lending should have paid extra. I also think it is intrusive the way Amazon deluges Prime users with spam-like reminders to watch videos they may not want.
We’re sending you this email because you’re a Prime member who is not using the video benefits that you’re eligible for.
You don’t have to sign up for anything new — unlimited instant video streaming is included in your Prime membership.
Now comes insult added to injury. According to press reports, we in the UK are being well and truly milked in comparison with even with US subscribers who pay £14 less, at £65 a year. That, though, is only the start: In Italy, Amazon Prime costs only £7.50, while in Spain it is £11.25 and still only £36 a year in France and Germany.
Unlike Apple, which strives to have broadly comparable pricing throughout the world, Amazon appears to decide how much they can get in any particular locality. It isn’t a question of how much the service is actually worth, it is how much Amazon can get.
It is about time Amazon accepted that not everyone wants to have a compulsory video-streaming service (after all, many choose to pay Netflix or other providers according to choice) and the subscription to Prime should be structured according to the services required. And they should charge broadly the same in all countries.
Mike always has a beautifully presented and very well written blog so it really is indelicate of me to offer even a word of criticism but for the sake of accuracy I must take him up on the statement that Apple "strives to have broadly comparable pricing throughout the world".As Australian Apple users know only too well this is definitely not the case for Australia.Apple does not allow us to access the US or other iTunes sites -we have to buy from the iTunes Australia site which means that we pay anywhere between 20% and 100% more for our downloads than US users.Similar differentials apply for Apple hardware.The softening of the A$ against the US$ has reduced the differences in recent months but they are still there.Apple is not alone in these practices as Adobe and also Microsoft play the same game.The issue of this local price gouging was the subject of an Australian Parliamentary Inquiry in 2013 which was critical of the practices of the companies concerned but to no avail.See http://www.afr.com/p/technology/applemicrosoftandadobetofrontGHjE8wy4pjkUg1jvJh7f5J
Just thought that I should put the record straight in an otherwise excellent blog.
John,
Apple freely acknowledges that its overseas prices are slightly higher than in the US. In the case of the UK the cite the higher cost of doing business, higher social security costs and tighter employment laws than in the US. This is fair enough. However, there is a general consistency in Apple’s pricing which appears to be entirely absent in the case of the Amazon Prime figures I quoted.
We also have to bear in mind the problem of currency fluctuations which makes it very difficult to fix and maintain prices. Apple does not change its prices often, although I know there have been increases in App Store costs recently, and it has to take a certain amount of risk looking forward. Some of this can be offset by fixing exchange rates through financial vehicles, but ultimately big changes have to be taken into account.
Prompted by your comment I have had a look at some UK and Australian prices in comparison with those in the USA. The first thing to do, obviously, is to strip out VAT and GST since Apple has no control over the rates of sales tax. That done, I find that the basic iPhone 6 with 16GB costs $649 in the USA, $681 in the UK and $617 in Australia. All in US dollars. Looking at the base iMac with 5K display, the price in the US is $2,499, in the UK $2,528 and in Australia, $2,130. At the moment, then, probably because of currency fluctuations, Australia looks cheap.
The price for the iMac in Australia is so at odds with the US and UK that I had to take a second look. Indeed, it costs $A2,726 before tax while in the UK it is £1,665 and in the USA £2,499.
I could go on checking prices but I don’t think Australia is getting a poor deal on the basis of these two examples.
Note that the £2,499 I quote for the iMac in USA should read $2,499
Couldn’t agree more and when you complain to Amazon UK about this it is a truly frustrating experience! To make matters worse I sense Amazon are moving away from free next day delivery with Prime as more and more items which would have been delivered next day come up with delivery day after next… for £79 it is starting to become poor value