Amazon has revealed that they will be increasing the cost of their yearly Prime subscription from $99 to $119. The price hike will commence on May 11 for new subscribers, while existing members will notice the $20 upcharge on June 16. The company announced in a call to investors on Thursday that these changes are being made because "both the value of Prime and the cost to offer it have increased significantly," noting how the number of items that qualify for Prime has increased to over 100 million in recent years.

Additionally, the online retail giant revealed that their first quarter earnings for 2018 have topped $51 billion, while the number of Prime subscribers has reached an unprecedented 100 million globally. 

Amazon may spend nearly $6 billion this year on content, which includes the forthcoming Lord of the Rings spinoff series that cost the company $250 million to acquire the rights for the beloved franchise. Hiking up the price for their Prime service will allow the company to recoup their exorbitant spending budget. 

In 2014, the price for a Prime membership surged from $79 to $99.