Amazon has failed to get the expected number of subscribers for its much vaunted Prime service, which it had launched to counter online video rental services like Netflix.
According to a report by Bloomberg, it seems Prime is suffering from an apparent lack of interest from internet users who do not seem to be enthused by the $79 a year two way shipping offered to its members along with access to a collection of videos available on the website.
The service which Amazon's CEO Jeff Bezos labelled as an "all you can eat" offering has just managed to garner five million users till last October; nearly half of the expected ten million mark.
The Prime program is already reeling under loses owing to higher shipping costs and low revenues and the company may need to look at fresh initiatives to rejuvenate the offering. While the company tried to promote the service by offering free trial membership to Kindle users and expanding its content range; its effort are not making the desired impact.
Some analysts believe that the company needs to come with creative solutions which may involve going in for a different subscription model as fulfilment costs associated with the current service are rather high.