Amazon.com, Inc. AMZN has grown into an e-commerce powerhouse. Against this backdrop, a survey released this month by KeyBanc Capital Markets shows that Amazon Prime membership has seen strong and increasing acceptance among households.
The firm has a Sector Weight rating on Amazon.
What Is Prime?
Amazon Prime is a paid subscription service that offers several advantages such as unlimited free, fast delivery on eligible items, video streaming, ad-free music, exclusive access to deals and more.
An annual subscription is $99, while the monthly subscription is $12.99.
Amazon's revenue from subscription services increased from $6.4 billion in 2016 to $9.7 billion in 2017.
About 63 percent of households surveyed in the first quarter of 2018 were Amazon Prime members, KeyBanc's survey said. This compares to 57 percent in the fourth quarter of 2017 and 52 percent in the first quarter of 2017.
Source: KeyBanc
The number of Amazon Prime memberships among lower-income respondents increased from 44 percent in Q4 to 50 percent in Q1.
In the middle- and higher-income bracket, the proportion who were Prime subscribers declined in Q1 relative to the last quarter of 2017.
In what should be good news for Amazon, Prime households have increased their spending over the past three years compared to non-Prime members, according to KeyBanc.
Amazon Prime subscribers in the U.S. amount to 90 million, Marketing Land said, citing a survey completed in September by Consumer Intelligence Research Partners.
Related Links:
From Mattresses To Groceries, Survey Shows Consumers Don't Always Prefer Amazon
Amazon Could Win The Cloud Wars With Automation, Says KeyBanc Analyst
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