Amazon Raises Ad-Free Prime Video Subscription Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AMZN?
Source: Newsfilter
- Price Increase: Amazon announced that starting April 10, the ad-free Prime Video subscription in the U.S. will rise from $2.99 to $4.99 per month, a 67% increase that may impact user retention.
- Service Rebranding: This price hike coincides with the rebranding of the ad-free tier to 'Prime Video Ultra,' adding features such as simultaneous viewing on five devices, up to 100 downloads, and 4K streaming, aimed at enhancing user experience.
- Advertising Revenue Growth: Despite the introduction of ads requiring additional fees for ad-free viewing, Amazon's advertising revenue for 2025 rose 22% year-over-year to $68.6 billion, indicating strong performance in the digital ad market.
- User Base Expansion: Amazon's latest earnings report revealed that the average ad-supported audience for Prime Video has grown from 200 million in April 2024 to 315 million globally, suggesting that user numbers continue to rise despite the price increase.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 209.530
Low
175.00
Averages
280.01
High
325.00
Current: 209.530
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Expenditure Plans: Amazon's capital expenditures are projected to reach $200 billion in 2026, a significant increase from $130 billion in 2025, primarily aimed at expanding AWS to meet the rising demand for cloud and AI infrastructure, reflecting the company's optimistic outlook for future markets.
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See More
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- Service Enhancements: The newly branded “Prime Video Ultra” will introduce several new features, including the ability to watch on five devices simultaneously, up to 100 downloads, and 4K streaming, demonstrating Amazon's ongoing investment in enhancing user experience.
- User Growth: Despite analysts questioning whether the additional fee would lead to Prime member cancellations, Amazon's latest earnings report indicated that the average ad-supported audience for Prime Video has grown from 200 million in April 2024 to 315 million globally, reflecting a sustained expansion of its user base.
- Advertising Revenue Surge: According to Amazon's latest annual filing, advertising revenue for 2025 rose 22% year-over-year to $68.6 billion, solidifying its position as the third-largest player in the digital ad market, showcasing the company's strong performance in its advertising business.
See More
