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Amazon Disputed a 2023 Report That U.S. Prime Growth Had Plateaued

CIRP’s 2023 estimate suggested U.S. Prime use had leveled off. Amazon rejected it and said membership was growing, but offered no U.S. count to settle the dispute.

By TheFinanceBase Team 4 min read
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On April 18, 2023, Amazon disputed a Consumer Intelligence Research Partners (CIRP) estimate that U.S. Prime membership had stopped growing. CIRP estimated about 167 million people in the United States used Prime benefits in March 2023, compared with about 170 million a year earlier. Amazon said membership was still growing year over year in the U.S. and worldwide, but did not publish a U.S. total or data supporting that claim. The disagreement remains a dispute over estimates, not a settled finding about Prime’s current growth.

What CIRP estimated

CIRP put the number of U.S. customers using Prime benefits at approximately 170 million in March 2022 and 167 million in March 2023. The three-million difference was within CIRP’s stated margin of error, so it should not be described as a statistically established loss of members. CIRP interpreted the results as a leveling-off: new additions were roughly offset by cancellations or other attrition.

The measure matters. CIRP was estimating individuals who used Prime benefits, not a count of paid accounts or households. A household account can serve multiple people, and those measures cannot be substituted for one another. The estimate was not an official Amazon membership figure or an audited company count. GeekWire’s contemporaneous account of CIRP’s estimate and Amazon’s response is available here.

CIRP also suggested the pandemic-era rebound may have been the last major surge in U.S. membership. That is an interpretation of a limited comparison, not proof that Prime had reached a permanent ceiling.

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What Amazon said—and what it did not disclose

Amazon spokesperson Maggie Sivon said an analyst report is not automatically factual, called CIRP’s research inaccurate, and said Prime membership continued to grow year over year both in the United States and worldwide. Amazon also said it believed the value delivered to members continued to increase. CIRP said it stood by its research.

Amazon did not provide a U.S. member count, a growth rate, a cancellation rate, or a detailed explanation of how CIRP’s estimate was wrong. Its statement is evidence of Amazon’s position, but without an accompanying figure or methodology it does not independently resolve the disagreement. Global growth, if present, would also not rule out slower or flat growth in the U.S.

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Why Prime membership matters to Amazon

Prime is more than a shipping subscription. Amazon describes benefits including fast, free shipping, entertainment access, and other member offers. The bundle connects retail orders with video, music, reading, promotions, grocery-related benefits, and customer retention. Amazon’s 2022 Form 10-K describes Prime benefits and shipping offers as part of its marketing approach; the filing is available from the SEC.

A mature or flat membership base would not automatically mean the program was failing. Amazon could focus on keeping members, increasing how often they shop, encouraging use of included services, or raising value per member. Conversely, continued membership growth would not by itself show that Prime’s economics are improving: costs to deliver benefits and the revenue generated per member also matter.

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Why subscription revenue does not settle the membership question

Amazon reported subscription-services revenue of $35.218 billion in 2022, up from $31.768 billion in 2021—about an 11% increase. Those are company-reported annual revenue figures, not Prime-only revenue or a count of members. Amazon’s category includes Prime fees as well as digital video, audiobooks, digital music, e-books, and other non-AWS subscriptions.

Revenue can rise while membership is flat or modestly lower. In 2022, Amazon raised the U.S. annual Prime price from $119 to $139, so a higher fee could increase revenue per renewing member. Other subscriptions can also grow independently of Prime. The revenue increase therefore neither proves nor disproves CIRP’s estimate. Amazon’s filing explains the category’s composition in its 2022 Form 10-K.

Why the pandemic comparison needs care

Prime adoption accelerated during the pandemic, when more people shopped online and spent more time at home. As in-person shopping resumed and delivery demand normalized, slower net additions would not necessarily signal a collapse. A large installed base also tends to grow more slowly in percentage terms than a smaller one.

Household budget pressure and the higher membership price may affect whether customers renew, while the value of shipping, entertainment, and other benefits may encourage them to stay. The available figures do not establish that the price increase caused the estimated leveling-off, or that the post-pandemic change represents a long-term ceiling.

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What is known, and what remains uncertain

Known from the public statements and filings Not established by them
CIRP estimated about 167 million U.S. Prime-benefit users in March 2023, versus about 170 million in March 2022. Amazon’s actual U.S. count of paid accounts, households, or individual users at those dates.
CIRP said the difference was within its margin of error. Whether the estimate reflects a real change in paid accounts, or how shared household use affected the estimate.
Amazon said membership continued to grow year over year in the U.S. and worldwide. Amazon’s supporting U.S. figure, growth rate, or cancellation data.
Subscription-services revenue rose from $31.768 billion in 2021 to $35.218 billion in 2022. How much of that increase came from Prime membership fees rather than price changes or other subscriptions.

Amazon announced in 2021 that Prime had surpassed 200 million members worldwide. That historical global milestone is not directly comparable with CIRP’s later estimate of U.S. individuals using Prime benefits: the geography and the measurement are different.

What evidence would resolve the dispute?

A regularly reported U.S. membership figure would help, but it would need a clear definition. A useful comparison would distinguish paid accounts from households and individual benefit users, specify the period measured, and report the same methodology over time. Consistent disclosure of cancellations and retention would clarify whether gross additions translate into net growth. Independent surveys using transparent methods could provide a check.

Amazon’s financial reporting does not regularly disclose a U.S. Prime membership total. Its subscription-services revenue is too broad to substitute for one, and the public material described in the 2023 dispute does not provide enough detail to reproduce CIRP’s estimate independently.

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