During Amazon’s fourth quarter 2013 earnings conference call, on Jan. 30, 2014, CFO Tom Szkutak said something surprising: “With the increased cost of fuel and transportation as well as the increased usage among Prime members we’re considering increasing the price of Prime between $20 to $40 in the U.S”. The retailer revealed the actual price increase three days ago, effective March 20.
That tip-off is excellent example about the ways companies float trial balloons and how the news media distributes them. Merriam-Webster dictionary defines trial balloon as “a project or scheme tentatively announced in order to test public opinion”. The Wikipedia definition, which “needs additional citations” fits with my own: “A trial balloon is information sent out to the media in order to observe the reaction of an audience”.