(CNN Money) — Amazon is raising the price of Amazon Prime from $99 to $119 per year.
The company announced the price hike for its membership program during a call with investors Thursday. The change will go into effect May 11, and it will apply to Prime renewals beginning June 16.
“We continue to increase the value of Prime,” Amazon CFO Brian Olsavsky said on the call, adding that the company has added “digital benefits,” like Prime Video.
He noted that the company is seeing “rises in cost” for providing Prime services, which include shipping perks and video streaming.
The move comes as Amazon announced massive profits. The company said Thursday it made $1.6 billion in profit during the first three months of 2018, more than double the same period a year earlier, even as it invests in costly fulfillment centers and original programming.
The estimate among analysts was that Amazon’s profit would shrink from the prior year.
Amazon’s sales for the quarter hit $51 billion, up 43% year over year, fueled in part by strong growth in its cloud computing business, Amazon Web Services. The division saw sales jump nearly 50%, reaching $5.4 billion.
Shares of Amazon jumped as much as 7% in after hours trading Thursday following the earnings results.
The company has been on a roll this year. Amazon has hit new milestones for its stock price, paying subscribers, cloud computing sales and even profit — something which once seemed unthinkable for the company.
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