Amazon will introduce Prime Video Ultra on April 10, charging an additional $4.99 per month for an ad-free viewing experience. The tier upgrades ad-removal from $2.99 to $4.99 and adds two more simultaneous streams (now five), boosts download capacity from 25 to 100 titles and unlocks 4K/UHD streaming.

This move continues Amazon’s strategy of segmenting its streaming base by toggling ad access and bundling perks. By increasing the ad-removal fee and enhancing features, Amazon aims to convert value-sensitive subscribers into higher-ARPU customers while retaining an ad-supported option at no extra cost.

Citi increased its price target from $265 to $285 and maintained a Buy rating, citing the company’s diversified revenue streams and margin resilience. The upgrade reflects confidence in Amazon’s long-term growth drivers despite volatile share performance in early 2026.

Shares have struggled to gain traction this year, prompting analysts to highlight potential rebound catalysts like cost optimization and ad revenue growth. Investors will watch April’s launch closely to assess its impact on subscription revenues and overall profitability.