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Amazon Targets to Trap Prime members

Amazon is offering unlimited photo storage to its Prime subscribers. Amazon’s new Prime Photos lets the more than 20 million Prime members store digital files, music, movies, documents and photo that they can then access from a variety of devices. Users can upload the photos from Apple iOS gadgets (iPhone, iPad) and devices that support Google's Android mobile operating system software, as well as from the Web.

Consumers who signed up for Amazon's Cloud Drive service, whether they were Prime members or not, received 5 gigabytes of free storage. The service, announced $99 (£79) per-year Prime membership, which also includes two-day shipping on over 20 million items, video streaming of movies and TV shows and access to the Kindle e-book lending library.

Amazon said it's been successful in adding Prime subscribers through Prime Instant Video, with customers signing up to stream the video content and then moving on to buy physical goods from its store.

Amazon ended up with $83 million worth of unsold phones by the end of its third quarter and has so far taken a $170 million charge on the business. While photo storage didn't convince consumers to buy a phone, Amazon is salvaging it just for Prime.


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