Execs know you make profit by raising income and cutting costs, and think no further than that. They will not lower income by lowering the price. You are naive if you think differently.
The difference between 50 cents a week and $29 a year is $5 a year, or 6 cents a week. Is the lack of that $5 losing them money? Even with the data harvesting and advertising? And since the higher price is 56 cents, then it's STILL not worth $7.
Plus, this is Jeff Bezos. He makes 2 cents per second. He is not in a position where he needs the money, nor your defence of his pricing policies.