Amazon (AMZN) has focused on improving the value proposition of its Prime membership by adding new services to this subscription. Despite an increase in shipping and content costs, Amazon has built a strong subscription segment that can provide a strong tailwind to future services launched by the company.
In the latest quarterly earnings, the subscription segment reported revenue of $4.95 billion which was 35% higher than the year-ago quarter, excluding F/X fluctuations. At the current pace, the company should be able to report $30 billion in subscription revenue on an annualized basis by