> 2) then increase prices higher than competition
The most ludicrous thing is people falling for the Prime membership. Why lock yourself in their system? It only encourages abuse.
The most ludicrous thing is people falling for the Prime membership. Why lock yourself in their system? It only encourages abuse.
Are Prime memberships valuable for Amazon? Certainly.
Do they lock you in? Not really; that’s assuming you could have spent less without a Prime membership, which might be true for many people but is certainly not true for all people.
Is it “the most ludicrous thing”? Not at all.
Most websites either have free shipping and higher prices, or non-free shipping and lower prices. Take your pick. But with Amazon, you're giving an extra $120 per year for the privilege of paying a higher price for that "free" shipping.
You’re making a lot of uncharitable assumptions about other people.
It's a bit inaccurate to talk about "lock in" when a consumer can choose a modestly more expensive month-to-month membership.
For me (plus two roommates), Prime Video adds enough additional content on top of Netflix and Hulu that it would justify the ~$10/mo all on its own.