Amazon raises ad-free Prime Video price by $2/month

• The price increase takes effect April 10, raising the ad-free tier to $4.99/month from $2.99/month, while adding features including simultaneous streaming on 5 devices, up to 100 downloads, and 4K streaming
• Prime Video's ad-supported audience grew to over 315 million viewers globally, up from 200 million in April 2024, demonstrating strong user retention despite the 2024 introduction of ads
• Amazon's advertising revenue rose 22% year-over-year to $68.6 billion in 2025, with the company ranking third in the digital ad market behind Google and Meta

Amazon Raises Ad-Free Prime Video Price by $2/Month

Key Developments:

Amazon announced a significant price increase for its ad-free Prime Video tier, effective April 10. The subscription will jump to $4.99 per month from $2.99—a 67% increase. The service is being rebranded as "Prime Video Ultra" and will include enhanced features such as simultaneous streaming on five devices (up from current limits), up to 100 downloads, and 4K streaming capability.

Background:

Amazon introduced advertisements to Prime Video in 2024, requiring members to pay extra for ad-free viewing. This applies even to Prime members who pay $139 annually for their base subscription. The company justified the price hike by citing "significant investment" required for ad-free streaming with premium features, noting the structure aligns with competitor pricing models.

Market Performance:

Despite initial analyst concerns about potential subscriber losses when ads were introduced, Amazon reports continued growth in Prime memberships. Prime Video's ad-supported audience surged to over 315 million viewers globally, up from 200 million in April 2024.

Amazon's advertising business showed strong performance in 2025, with revenue climbing 22% year-over-year to $68.6 billion. The company ranks third in the digital advertising market behind Google and Meta.

Implications:

The price increase reflects Amazon's strategy to monetize its streaming platform through both advertising and premium tiers. The substantial viewer growth in the ad-supported tier suggests users are accepting commercials rather than paying extra, potentially making this price hike a calculated move to drive higher-margin advertising revenue while maintaining a premium option for price-insensitive customers.