Amazon to hike price of ad-free Prime Video tier by $2 a month

Amazon has announced a $2 increase in the monthly fee for its ad-free Prime Video service in the U.S., raising it from $2.99 to $4.99. This change will take effect on April 10. Alongside the price hike, the service is being rebranded as "Prime Video Ultra," and subscribers can expect enhanced features, including the ability to stream on five devices simultaneously, up to 100 downloads, and support for 4K streaming. In a blog post, Amazon explained that delivering ad-free streaming with premium functionalities necessitates substantial investment. The company aims to align its pricing structure with other leading streaming platforms while offering customers the flexibility to choose their viewing preferences. The introduction of advertisements to Prime Video in 2024 raised concerns among analysts regarding potential subscription cancellations among Prime members, who already pay $139 annually for the service. This pricing strategy led to some Prime Video users filing a class-action lawsuit, which was dismissed last year. Despite these challenges, Amazon has reported continued growth in Prime subscriptions. In its latest earnings report, the company revealed that Prime Video boasts an average audience of over 315 million viewers globally, a significant rise from 200 million in April 2024. Additionally, advertising revenue for 2025 saw a 22% increase year-over-year, totaling $68.6 billion, positioning Amazon as the third-largest player in the digital advertising market, following Google and Meta.