By Gavin Boyle
Amazon announced it will give young adults a reduced price offer for Prime membership, offering the service at 50% off for those aged 18-24.
“When people join Prime, they buy more of everything we sell,” said Amazon founder Jeff Bezos. “They buy more shoes, they buy more power tools and so on.”
Thus, while the 50% discount is highly lucrative for young adults, Amazon is also betting that it will pay off in the long run. This age group is more likely to be making large purchases, such as furniture, as they move out from their parents’ homes and begin to acquire these big ticket items. While Amazon is the de facto location for online shopping, it is not necessarily the first stop when looking for these items, so by getting more of this age group to sign up for Prime, it allows them to sell more large items.
When signing up for the deal, young adults will receive six months of Prime for free before needing to verify their identity – through an official I.D. – to continue to enjoy the service for $7.49 monthly or $69 annually. Users also receive 5% cash back on beauty, electronics, apparel and personal care products.
Related: Amazon CEO Andy Jassy Touts Prime Video’s 200 Million Monthly Viewers
Those who sign up through the deal will also receive access to other Prime subscriber perks such as Prime Video. Adding even more viewers to this service will only lead to more profits as it allows the platform to serve up more ads. When ads were first added to the platform at the beginning of 2024, experts predicted they would generate an extra $7.1 billion per year for the company by 2026.
“We have increasing conviction that Prime Video can be a large and profitable business on its own. This confidence is buoyed by the continued development of compelling, exclusive content (e.g. THURSDAY NIGHT FOOTBALL, LORD OF THE RINGS, REACHER, THE BOYS, CITADEL, ROAD HOUSE, etc.), Prime Video customers’ engagement with this content, growth in our marketplace programs (through third-party Channels program, as well as the board selection of shows and movies customers rent or buy), and the addition of advertising in Prime Video,” Amazon CEO Andy Jassy said in April 2024.
The platform has only continued to succeed since then, thanks to family-friendly content, like HOUSE OF DAVID, which is luring more and more viewers.
Amazon continues to be an innovative compan,y and programs like Prime for young adults help keep it at the top of e-commerce rather than being usurped by a competitor that comes out of nowhere.
Read Next: Amazon Looks to Add $3 Billion in Profit Through Prime Video Ads
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