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Amazon just announced an increase to Prime membership costs in the US

Amazon Prime customers in the US will now have to pay $12.99..

Amazon Prime customers in the US will now have to pay $12.99 (£9.37) a month for the service after the tech giant bumped up prices from $10.99.

Shares in the company opened up more than one per cent.

Students members will also face a monthly price rise of one dollar to $6.49.

But users who choose to pay up-front annual fees for the service will still pay $99 for standard membership and $49 for students.

The fast-delivery and streaming service is a core part of Amazon's business. It has invested in programming for Prime Video as a rival to the likes of Netflix to attract more customers to sign up.

Read more: HMV overtakes Amazon in fight for dwindling DVD and Blu-ray sales

Customers get free two-day delivery and discounted next-day options.

In the UK, this caused problems in the run-up to Christmas as some customers complained deliveries had been delayed.

Amazon announced yesterday it will build a second headquarters in the US, with 20 cities currently on the shortlist.

Read more: The 10 richest billionaires who added most to their wealth in 2017

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