Retail

Amazon raises ad-free Prime Video to $4.99/month, rebrands to Prime Video Ultra

Amazon is raising the price of its ad-free Prime Video tier to $4.99 per month in the U.S., with the upgrade taking effect April 10, 2026. The ad-free option is being rebranded as Prime Video Ultra, boasting five-device streaming, up to 100 downloads, and 4K. The move signals a sharper push to monetize Prime Video amid rising streaming costs.

📅 March 13, 2026
⏱️ 2 min read
Amazon raises ad-free Prime Video to $4.99/month, rebrands to Prime Video Ultra

Key Takeaways

  • Ad-free Prime Video price increases from $2.99 to $4.99 per month in the U.S., effective April 10, 2026.
  • The ad-free tier is rebranded as Prime Video Ultra, with five-device streaming, up to 100 downloads, and 4K.
  • The ad-supported audience for Prime Video is cited at 315 million globally, up from 200 million in April 2024.
  • Amazon's 2025 digital advertising revenue rose 22% year-over-year to $68.6 billion, making it the third-largest digital ad player behind Google and Meta.
  • Prime membership remains $139 per year, and Amazon argues the price hike aligns with premium streaming pricing and investment in features.

People Involved

  • No specific individuals mentioned

Entities Involved

  • Amazon.com, Inc. (AMZN) Parent company of Prime Video
  • Prime Video Streaming service offering ad-supported and ad-free tiers

MarketMoodz Analysis

The price increase could lift Prime Video Ultra's ARPU, improving its contribution to Amazon's video and advertising ecosystems. For investors, the key question is churn: if the higher price prompts subscribers to drop the ad-free option, overall subscriber counts could dip, offsetting ARPU gains. The expansion of features (five-device streaming, downloads, 4K) supports the value proposition but may test consumer demand amid broader cost pressures.

Historically, streaming services have moved toward higher price points for premium, ad-free experiences while monetizing with ads to fuel growth. Amazon's 2025 ad-revenue growth of 22% highlights a broader shift toward digital advertising. The ad-supported audience growth suggests upside for monetization, but margins hinge on incremental ARPU and retention. Next, investors should watch Prime Video's subscriber trajectory, the ad revenue mix, and any official pricing changes beyond the U.S.

Source: Original Article

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