Prime time: Amazon ups subscription costs as LoveFilm is phased out

AMAZON is gambling on the success of its one-day delivery service Prime, by rolling out a more expensive product that includes LoveFilm Instant. Prime Instant Video launches today in the UK and went live in the US in 2011, where it costs $79 per year. UK subscribers will have to pay £79 for the combined service, which includes Prime one-day delivery on Amazon, free Kindle books and access to the LoveFilm Instant library. Prime Instant Video is a risk for the company, as it will force customers to pay £30 more for the popular delivery service, even if they don’t want to stream films. Existing LoveFilm customers will only see their bills increase by £7 per year when their contract is renewed. Amazon is also investing heavily in creating its own programmes in a direct response to the success of rival Netflix, which is home to hit series House of Cards starring Kevin Spacey.