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Here’s Why Amazon Just Discounted Prime

By
Leena Rao
Leena Rao
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By
Leena Rao
Leena Rao
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January 14, 2016, 1:43 PM ET
The Amazon.com Inc. Prime logo is displayed on a computer screen.
The Amazon.com Inc. Prime logo is displayed on a computer screen.Photograph by Daniel Acker—Bloomberg via Getty Images

Amazon is temporarily discounting the price of its Prime membership service in celebration of winning two Golden Globe awards for its original series, Mozart in the Jungle.

The company said Thursday that it would cut the price for Amazon Prime to $73 annually from $99, from Friday evening until Sunday evening.

Amazon Prime gives users access to streamed movies, TV shows, and Amazon’s original productions in addition to free two-day shipping on 20 million items. The program is intended to increase customer loyalty for the e-commerce giant.

Over time, Amazon has added temporary and permanent incentives for consumers to buy into the company’s subscription service. Last year, it included a free subscription to The Washington Post (which Amazon CEO Jeff Bezos owns) for free for six months, as well as a reduced rate on a full subscription. Earlier this week, Amazon said it would give Prime members a 20% off new releases of video games sold on the marketplace.

For more on Amazon Prime, watch:

As part of its marketing push announced Thursday, Amazon said it would make seasons one and two of Mozart in the Jungle available for free to everyone this coming weekend. The series won Golden Globe awards on Sunday for best TV comedy or musical series while actor Gael García Berna also won for best actor in a musical or comedy series.

While $73 is a significant discount for Prime, Amazon had dropped the price even further, to $67, following its Emmys wins last year.

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On Wednesday, investment bank Cowen released a report showing that Amazon Prime is now being used by 38% of American households. The firm also estimated that as of December, Amazon had 41 million U.S. Prime members, a 32% increase from 2014.

Analysts have called Prime one of Amazon’s most valuable and important businesses. Amazon CEO Jeff Bezos has described it as one of his company’s biggest strengths.

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By Leena Rao
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