Amazon: Fear Of Saturated Market Is Overhyped


  • Amazon’s subscription business is showing steady growth, with no signs of saturation.
  • Recently Amazon has also added another incentive for Prime members by reducing the cost of One Medical service by $100 which could help close to 1 million members.
  • Amazon has already announced that it will run ads on Prime Video, or charge an additional $3 per month for an ad-free option.
  • Even at a modest 10-12% CAGR growth in subscription, the revenue base of this segment could reach $100 billion by 2030.
  • Amazon’s subscription business provides a flywheel effect for new services, improving the monetization of the customer base, and gives the company a long term growth runway.
Amazon fulfillment center building in Las Vegas

4kodiak/iStock Unreleased via Getty Images

Amazon’s (NASDAQ:AMZN) recent earnings were a mixed result with strong growth in advertising and a slowdown in cloud growth. However, one of the key segments to look at is the subscription business. This segment reported 13% YoY growth with

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