The above graph represents Amazon Subscription services revenue by quarter, starting from fiscal Q1 2016 to the most recent quarter. The subscription revenue includes the annual and monthly fees associated with Amazon Prime memberships, as well as audiobook, digital video, e-book, digital music, and other non-AWS subscription services. Amazon subscription revenue in Q4 2019 reached an all-time high of $5,235 million ($5.2 billion), with a year-over-year increase of 32%. The growth is primarily driven by the increase in the number of Amazon Prime members. The subscription services accounted for 5.99% of Amazon’s total revenue in Q4 2019.
Amazon Subscription Services Revenue by Quarter
|Source||Amazon Quarterly Reports, SEC Filings|
|Note||Amazon Fiscal Year – from January to December|
It was Q1 2019 when Amazon revenue from subscription services crossed the $4 billion mark for the first time in history. About $4,342 million ($4.3 billion) in revenue was generated through subscription services, with a whopping 39.97% YoY increase.
In Q1 2016, Amazon generated $1,300 million or 1.3 billion in revenue from its subscription services, globally, which increased to $2,131 million ($2.1 billion) by the end of December 2016.
Interestingly, in Q1 2018, Amazon reported a strong 60% YoY growth in subscription services revenues, from just $1,939 million to $3,102 million. Subscription services accounted for over 6% of the company’s total revenue during the first quarter.
However, Amazon Subscription services revenue growth slowed down in the last one year. In Q4 2018, the global retail giant witnessed the slowest 25% YoY growth in revenue from subscription services. One reason could be the saturated Prime membership in the United States.
It should be noted that Amazon Prime subscription fees vary across geographies and duration. For instance, Amazon’s monthly subscription fee is more expensive than its annual fees i.e $119 per year and $12.99 per month.
About Amazon.com Inc: Additional Information
Amazon.com, Inc. (NASDAQ: AMZN) is an American multinational internet and e-commerce company, founded by Jeff Bezos and is headquartered in Seattle, Washington. The company was initially incorporated on July 5, 1994, as Cadabra, Inc, and reincorporated on May 28, 1996, in the state of Delaware.
In July 1995, Amazon began its service as an online bookstore. However, later it started offering an array of products and services to the people around the world. Today, the online retail behemoth has got hands almost in every business related to tech, from retail e-commerce to cloud computing and IoT.
On May 15, 1997, Amazon completed its initial public offering (IPO) of 3,000,000 shares of its common stock, at a price of $18.00 per share.
Amazon’s major products and services include Amazon Web Services, Amazon Prime (February 2, 2005) Amazon Music ( September 25, 2007), Amazon Kindle ( November 19, 2007), Amazon Echo (November 6, 2014), Fire Phone (announced on June 18, 2014), etc.
In June 2013, Amazon finally launched its market place in India.
With $97 billion value, Amazon ranks 4th among the world’s most valuable brands 2019 by Forbes.
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