Amazon Prime expected to reach majority of U.S households in 2019

by Talk Business & Politics staff (staff2@talkbusiness.net) 78 views 

Amazon Prime shows no signs of losing members despite some subscription fatigue being felt among consumers. A recent prediction from eMarketer estimates 51.3% of U.S. households will be Amazon Prime members by the end of 2019. That represents about 70 million U.S. households, up from the 58.7 million classified as Prime members in 2018.

The Amazon Prime penetration was about 47.4% of U.S. households in 2018, according to eMarketer. By the end of 2020, eMarketer predicts Amazon Prime membership will be 54.8% of U.S. households, or 68.7 million.

The growth is expected to come from higher participation of lower-income households and consumers attracted to multiple offerings from free and fast delivery of household staples as well as a growing array of streaming entertainment content for no added charge.

Early last year Amazon announced a price reduction of the $99 annual fee or $12.99 per month for millions of Medicaid recipients around the country. Amazon lowered the monthly fee to $5.99 for a Prime membership that includes the two-day free shipping as well as unlimited music and video streaming.

While roughly 70% of U.S. households with income over $112,000 are already loyal Amazon Prime members, the biggest opportunity for growth is likely coming from lower-income households traditionally served by Walmart and dollar stores. By 2021, eMarketer expects Amazon Prime penetration to reach 71.7 million households, or about 60%.

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