Amazon Raises Ad-Free Prime Video Price by $2 to $4.99, Rebrands as Ultra
Amazon will raise the price of its ad-free Prime Video tier to $4.99 per month effective April 10, rebranding it as Prime Video Ultra and increasing cost by $2. The move aligns pricing with competitors including Netflix, Disney and Paramount Global and could increase Prime Video subscription revenue.
1. Price Increase and Rebranding
Amazon is boosting the monthly cost of its ad-free Prime Video tier from $2.99 to $4.99 starting April 10 and will relabel the service Prime Video Ultra. This represents a $2 per month increase aimed at enhancing the perceived value of the ad-free experience.
2. Competitive Context and Revenue Impact
The new pricing brings Amazon’s ad-free tier in line with recent hikes by Netflix, The Walt Disney Company and Paramount Global. Analysts anticipate the adjustment could materially lift Prime Video’s average revenue per user and overall subscription revenue while testing customer tolerance for higher streaming costs.