Amazon Prime to cost more, here are new prices for yearly and quarterly membership

Most Indians identify OTT as Netflix, Amazon and Hotstar, despite new players emerging, and while Netflix delivers hits, its pricing at Rs 649 a month was too high compared to Amazon's Rs 999 for an entire year. But while Netflix clocked higher user engagement after introducing cheaper plans starting at Rs 149, its competitor is going the other way.

Barely months after offering discounts on subscriptions, Amazon has hiked rates for its Prime membership, which provides access to streaming and other perks.

Major hike after six years

The plan which unlocks OTT, quick delivery, music, and gaming platforms, will now come for Rs 1,499 per year, as compared to Rs 999 which had been set in 2017.

For three months, consumers now need to pay Rs 599, compared to Rs 459, and prices for a month are up from Rs 179 to Rs 299.

Rate hikes have been introduced as Amazon continues its cost-cutting drive, which involves firing thousands of employees in two phases.

The layoff by the e-commerce and streaming giant, had also left more than 1,000 people in India without a job.

How does the competition fare?

On the other hand Netflix hasn't raised its prices, and despite cheaper plans, the premium package still comes for Rs 649 a month.

Both Amazon and Netflix are scaling up original content at a time when competitor Disney Hotstar has lost HBO series and movies.