Analyst: Look to Amazon to Bundle Prime and Satellite Internet

WASHINGTON, Oct. 10, 2024 - Amazon’s ambitious global broadband access program could bring satellite-based internet access to Prime members around the world.

Project Kuiper, Amazon’s planned constellation of more than 3,200 satellites, could increase global connectivity worldwide, and at a significantly reduced cost to those with Amazon Prime memberships.

“We think Amazon could potentially bundle satellite-based internet service as part of Prime membership or offer the subscription to Prime members at a material discount to current offerings," said Evercore ISI Analyst Mark Mahaney. “We expect investors to focus more intently on the service's associated costs and revenue opportunities.”

Prime members already enjoy expedited delivery, free shipping, exclusive deals, and bundled entertainment services, including music and video. An Amazon Prime membership costs $139 a year. Prime has about 180 million U.S. subscribers.

Mahaney also noted that Project Kuiper represented a significant market opportunity for Amazon. He cited Elon Musk’s Starlink, which has seen revenue skyrocket from zero to nearly $7 billion in just four years.

Despite the opportunity presented by Project Kuiper, Mahaney expects Amazon to incur losses that could total up to $6 billion before any meaningful revenue is generated.

Amazon’s first two test satellites for Project Kuiper were launched in 2023, though the company planned to begin its first full-scale launch in the fourth quarter of this year.