Amazon.com Inc.AMZN is always on the lookout for newer ways to increase the number of Prime members, be it through a "Prime Day" sales event or bundling in subscriptions with Amazon hardware.
Its latest move - Amazon Prime on Sale! Yes, the Seattle-based company is offering Prime membership for $67 instead of $99 on Sep 25. The sale will start at 12:01 AM ET, and continue through 11:59 PM ET.
The limited-time offer is only available to new Prime members.
Why the odd price? $67 refers to the 67 th PrimeTime Emmy Awards held this year in which Amazon's original hit show Transparent won five Emmys.
Does it Matter?
This might appear to be just another gimmick by Amazon, but it is actually quite a smart move considering the time of the year.
The awards ceremony highlighted Amazon's focus on producing original television shows. Thus, a discounted Prime membership might lead to an increase in Amazon Prime Instant Video subscriptions.
Moreover, with the holiday season just around the corner, those who haven't signed up yet might be interested considering Amazon's track record of offering exclusive deals for Prime members at this time of the year.
Though Amazon does not disclose the exact figures, there are an estimated 35 million to 40 million Prime members. As subscriptions go up, its operating margins increase.
When customers pay a subscription charge, they want to maximize on it. As a result, they use the service as much as possible, driving the company's sales. Since they become repeat buyers, customers' loyalty for the brand increases. Amazon offers more and more products and service perks to further enhance this loyalty.
While a $32 discount may seem too much, the company hopes to make up for it soon. According to Consumerist, an average Amazon Prime customer spends an estimated $1,500 per year on the e-Commerce site, compared with $625 spent by non-members.
Amazon Prime membership includes free 2-day shipping on over 20 million items, access to the Kindle Lending Library, Prime Music, unlimited photo storage, and more.
Amazon currently sports a Zacks Rank #1 (Strong Buy).
Other stocks in the same space that investors may consider are Stamps.com Inc. STMP , Travelport Worldwide Limited TVPT and Autobytel Inc. ABTL . While Stamps.com and Travelport have the same Zacks Rank as Amazon, Autobytel carries a Zacks Rank #2 (Buy).
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