The Insider Picks team writes about stuff we think you'll like. Business Insider has affiliate partnerships, so we get a share of the revenue from your purchase.Amazon Prime will increase from $99 per year to $119.The new price will take effect May 11 for new subscribers, and current Prime members will see the change when they're up for renewal, starting June 16.Even with the 20% increase, Prime is still ultimately a great deal if you plan to use its features, whether sparingly or frequently.Asking the question "how much would you pay for Amazon Prime" is kind of like asking how much would you pay to keep using Google. It's so fundamentally entrenched in our daily lives (with over 90 million US subscribers, estimated in 2017 at about 64% of the nation's households) that it has reached an almost ubiquitousstatus. We are used to near-instant gratification, and for many of us, it's hard to put a price on that convenience.But that price is, unfortunately, rising. Amazon Prime memberships will now cost $119 per year rather than $99an increase of 20%. The new price will take effect May 11 for new subscribers, and current Prime members will see the change when they're up for renewal, starting June 16.The increase comes after a four-year price plateau due to a variety of reasons. There are more Amazon Prime members than ever and those members are buying in higher volumes, naturally driving up shipping costs. President Donald Trump has also threatened higher U.S. Postal Service rates for the company overall. And, lastly, Amazon is more aggressively pouring money into its digital content offered to Prime members. JP Morgan estimates Amazon will spend 5 billion on this aspect alone in 2018, up from 4.5 billion the year prior.At least the last reason promises increased value to members. For the $119 annual fee, Prime members gets a slew of benefits (which definitely range in usefulness): free two-day shipping, free same-day shipping, and free two-hour delivery on eligible items (of which there are many), exclusive rewards and discounts, Prime Video, Prime Music, online photo storage, music and books, and about 20 other perks.But, all in all, is Amazon Prime still worth it, even at its new $119 cost'In short, yes. AsRBC Capital Markets' Mark Mahaney wrote,There are three great deals in America todaythe Happy Meal ($3.29), Netflix ($10.99), and Prime (even @ new price of $119up 5 Grande Lattesa year). Granted, you may not use every feature included in your annual membership. If you're a student and/or have access to a university email and save 50% on the yearly feewith Prime Student or you share yourAmazon Prime and most benefits with family members via Amazon Household, your dollar stretches even further. Prime is also discounted ($5.99 per month) for qualifying customers with an EBT or Medicaid card.But even if none of that applies to you, it's still generally a great investment.Ultimately, most of us will pay the increased fee without much grumbling. But, if you want a breakdown of the ways you're saving and potentially reassess the cost, check out our breakdown below. If you're unsure and haven't made the leap yet, check out a 30-day trial of Amazon Prime before deciding it's worth committing to.Here's a breakdown of why Amazon Prime is still a great value, even at $119 per year:Shipping costs.The annual price of $119 includes free two-day shipping onover 100 million items.Without Prime, you'll get free regular shipping if your order is over $25, but no two-day perk. This could promote over-shopping (adding more to cart so as to meet the threshold).Two-day shipping (give or take a couple bucks) typically costs about $10. If, as a Prime member, you place 11 orders of under $25 over the year on Amazon (say, you need paper towels but not much else), the membership pays for itself.And while expedited shipping is an abnormal cost for most of us, it's a pricey one. However, Prime's free same-day shipping on over a million items in 8,000 cities when you spend over $35 can save you money,time, and convenience. Order before noon and get your items that day by 9 p.m. Just check your zip codeto see if same-day and one-day options are available near you. On average, Amazon Prime members spend $1,300 US dollars on the platform every year. Non-Prime users spend a little more than half that ($700), but they may be picking up the tab elsewhere, like in the cost of gas to shop in-store, the higher price of items from big-box retailers, and shipping from other stores.Video streaming services.One of the suspected reasons for the increase in annual fee is how much money Amazon is pouring into its digital content, which is one of the best perks of the Prime membership.Prime Video lets you stream froma large library of movies and TV shows for free, including Prime Originals content, and rent the latest releases for low prices.Prime members can also subscribe to over 100 channels (and only pay for the channels they want, which is great for saving money without losing convenience), including HBO, Showtime, and CBS All Access.Plus, it's probably only going to get better as Amazon continues to force itself into the space. The company recently struck an exclusive two-year renewal for the NFL'sThursday Night Footballgames to live-stream on Prime Video, for which Amazon is paying $65 million per year, Reuters reported.Unlimited photo storage and sharing, as well as 5 GB for videos and files.Prime Photos lets you save and share unlimited photos across desktop, mobile, and tablet, as well as share unlimited photo storage with up to five people. If you're paying a few bucks every month to increase your iCloud storage just to make room for the photos on your phone, you can cut out that cost and use your membership to a fuller extent. You'll also get five GB for videos and files. AndPrime Photos comes pre-installed on Amazon devices, so you can also view your photos from your Fire TV and Echo Show.See the rest of the story at Business Insider
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