When Netflix and other streaming giants found themselves in need of more cash, they hit viewers who shared their passwords.
People complained, but gambit worked.
Now, another service we use every day applies the same principle to online shipping.
Amazon is discontinuing a popular service that allows Amazon Prime members to share fast, free private delivery with people outside their homes, marking a significant shift in how Amazon orders are implemented and potentially boosting costs.
But the plan (Prime Invitee) will disappear in less than a month.
The program started in 2009, Amazon Prime members can share their shipping benefits with other adults, even if the person uses a different address. The invitee received a limited Prime account and offered a free two-day shipping fee.
Prime Invitee stopped attending new admissions in 2015, but traditional users have been able to continue to enjoy benefits.
Invitee plans to end on October 1. Replace its location – an estimated 240 million major subscribers worldwide, more than 180 million US dollars One person- Yes Amazon Family Programas long as members live in the same address, they can share transportation and other benefits.
“The Amazon family enables key members to share a range of benefits with an adult, whether it is a spouse, family member or roommate, as well as Prime videos and other digital content such as Kindle Ebooks, Audiobooks and Games, and Games, with up to four children in their family,” Amazon said in a statement to the New York Times.
Dan Ives, an analyst at financial services firm Wedbush Securities, said Amazon’s decision to change its subscription policy was “a sign of the times.”
He said the e-commerce giant is extracting pages from Netflix.
The problem with streaming media like Netflix is that customers share or sell information about the entire account. These streamers have previously turned a blind eye to password sharing as a way to increase their audience. This practice is a complex illegal market for online providers, which pop up sales account passwords. Streaming and paid TV providers Losed $9.1 billion in revenue Account sharing and pirated in 2019.
Some experts believe that sharing Password suppression There are risks, but it turns out to be The great success of Netflix Aother Streaming media like HBO Max has launched its own efforts.
Password sharing is then suppressed. Now, Amazon is also suppressing it. Although the Prime program doesn’t involve password sharing (not Invitee’s Prime account, it has a stripped version), it does spread PERK all over the home.
According to ReutersCiting internal company data, Amazon’s recent Prime Day (which was extended for the first time this year by four days) failed to reach last year’s total U.S. registration. A Reuters analysis found that the company acquired 5.4 million U.S. registrations within 21 days before puberty in July this year, an estimated 116,000 fewer than the previous year – the data does not include the exact time period in 2024.
Amazon delayed its report in a statement to the Times, saying its key membership continued to show strong national and international growth and customer engagement, as it reported in its second-quarter earnings.
“In addition, it’s been the 2025 Prime Day and the three weeks since the event kicked off with record-breaking Prime customers worldwide,” the statement said. “We continue to see strong adoptions around the world.”
Still, the Prime Invitee program is being phased out.
Ives told the Times that Amazon is following “Netflix’s model and trying to eventually break passwords and account sharing.” “For Netflix, it’s a home run success. Amazon will go the same path. … It’s a long-term problem for Amazon.”
“The midnight clock hit this point,” Ives said of Prime Invitee.
But will the company lose its membership due to the conversion?
Free shipping is important for many American shoppers.
Recent Investigations Personal finance website Nerdwallet One in 5 Americans found said they almost always choose a retailer that offers free shipping. Survey participants also said that when they shop online, the two most important factors were the lowest prices and free shipping.
Now, many people who want to keep their main shipping offers must now pay for it. For those affected by the switch, Amazon offers a limited-time deal for 12-month Prime for $14.99. The offer is valid until December 31. Membership periods are $14.99 per month and $139 per year.
Ives doesn’t want customers to give up Prime because he says many think the service is as important as a utility or TV service. He said that, apart from that, the company is not very competitive.
What does the Amazon Family Program offer?
The Amazon Family Program gives key members the opportunity to share membership benefits with another adult in the family, up to four teenagers (added by April 7, 2025) and up to four children profiles.
Other adult members and any pre-invitation sessions that are not in the residence of the account holder will require their own primary membership.
According to Amazon, to share the benefits with another adult, the address must be “where do you think you are your home, most of the time.”
The common interests of the program include:
- Free shipping of eligible items.
- Access exclusive major events and deals.
- Prime video (with ads).
- Prime Reading, which includes e-books and audiobooks, but the library is smaller than Amazon’s Kindle Unlimited service.
- Get third-party benefits (e.g., GrubHub without delivery fees).
- Amazon Music Prime Minister can share it with other adults in the Amazon family. This allows two adults to access ad-free listening during a shuffle.
