Credited from: CBSNEWS
Amazon has announced the discontinuation of its Prime Invitee program, which permitted Prime members to share free shipping benefits with individuals outside their household. The program will officially end on October 1, 2025, prompting many users who have taken advantage of these benefits to secure their own Prime subscription moving forward, a shift that could affect millions of customers throughout the U.S., according to Newsweek and CBS News.
In its place, Amazon will introduce the Amazon Family program, which allows Prime members to share benefits, including shipping perks, with one adult and up to four children, provided all individuals share the same primary residential address. As part of this transition, users who do not reside with the account holder will now be required to purchase their own memberships to continue accessing these benefits. A limited-time offer has been made available, allowing affected users to sign up for a year at a rate of $14.99 before the regular fee increases to $14.99 per month, reports India Times and Los Angeles Times.
The rationale behind these changes appears linked to broader trends in the subscription service landscape, reminiscent of how streaming platforms have adjusted password-sharing policies. "Amazon is following Netflix's model in terms of the family program and trying to ultimately crack down on password and account sharing," said Dan Ives, a financial analyst, suggesting that Amazon aims to secure its subscription model similar to strategies adopted by streaming giants, according to information from Los Angeles Times.
Despite concerns regarding potential loss of customers due to this shift, Amazon remains optimistic. The company reported strong growth in Prime membership during recent promotional events, even while noted metrics suggested recent sign-up rates were lower than previous years. Amazon stated, "Prime membership continues to show strong growth and customer engagement in the U.S. and internationally," underscoring their commitment to the service and its perceived value, as per CBS News and India Times.