Prime Video platform creates Ultra plan for US$4.99 and restricts 4K resolution for premium subscribers

5 min read
Amazon Prime Video Foto: Amazon Prime Video - Kenishirotie/shutterstock.com

The technology and e-commerce company Amazon announced a restructuring of its video streaming service, establishing new guidelines for the modality free from commercial breaks. From April 10th, the option that removes advertisements from the platform will undergo a financial adjustment and will receive the official nomenclature of Prime Video Ultra. The amount charged for the ad-free add-on will increase from $2.99 ​​to $4.99 per month in markets where the change has already been implemented.

The change in the price list accompanies a technical reformulation of the platform, which now segments the resources offered to users according to the subscription level. The company’s strategy aims to create a clear distinction between the basic plan, which now includes display advertising, and the new superior service category.

The platform’s executives justify the modification as a necessary measure to maintain investments in the production of original content and the acquisition of rights to broadcast live events. The transition to the Ultra model directly impacts how consumers access high-fidelity audio and video features in television and mobile apps.

Changes to billing structure and technical resources

The creation of Prime Video Ultra establishes a new level of consumption within the company’s ecosystem. The two-dollar increase in the monthly fee for the ad-free package represents a move to adapt to recent practices adopted by other companies in the digital entertainment sector.

To compensate for the financial adjustment, the platform incorporated expansions in the simultaneous use limits. Customers who choose to subscribe to the Ultra plan will have technical permission to play films and series on up to five screens at the same time.

This expansion contrasts with the platform’s previous limit, which restricted simultaneous transmission to just three devices connected under the same account. The measure meets the demand of homes with multiple users who consume different programs at the same time.

The app’s local storage system also received a capacity upgrade for subscribers to the new category. The download limit for offline viewing increased from 25 to 100 titles, allowing the creation of extensive libraries on cell phones and tablets.

Image and sound quality restriction

The most sensitive change to the user base involves the availability of the higher image resolutions offered by the service. 4K quality and Ultra Alta Definição (UHD) technology, previously released unrestrictedly to all customers, become exclusive to the Ultra package.

Subscribers who decide to remain on the basic plan, in addition to seeing ads during playback, will have their video resolution limited to standard high definition (HD). The technical restriction works as an incentive mechanism for the migration of users who have televisions compatible with superior technologies.

Movement in the digital entertainment sector

Amazon’s decision reflects a consolidated trend among the main video on demand operators. Nos recent months, competing platforms have also implemented advertising-supported plans and restricted high-quality features to the most expensive packages.

The business model focused exclusively on growing the subscriber base gave way to strategies to maximize average revenue per user. The introduction of advertisements allows companies to diversify their sources of income in a market with signs of audience saturation.

Video quality segmentation is already a common practice in the industry, used to justify the existence of multiple price ranges. The transition of Prime Video aligns the service with commercial standards established by its main direct rivals in the streaming segment.

How Expanded Offline Storage Works

The increase in the download limit to 100 titles directly serves users who travel frequently or who live in areas with unstable internet infrastructure. The local storage process requires the customer to have sufficient physical space in the smartphone or tablet’s memory, as high-resolution files occupy significant volumes of data. The platform maintains the automatic expiration system for downloaded content, requiring the device to connect to the network periodically to validate the reproduction license on the company’s servers.

Management of this offline library occurs directly in the application interface, where the user can select the download quality to optimize the device’s space. The exclusivity of this expanded limit for plan

Maintaining the benefits of the original package

Despite profound changes to the structure of the video service, the company confirmed that the main subscription to Amazon Prime remains unchanged in its essence and base value. The original package continues to offer access to the standard catalog of films and series, now with the inclusion of commercial breaks, in addition to maintaining the logistical benefits that have characterized the service since its creation. The advantages of free shipping on selected e-commerce products, access to the music streaming platform in its basic version, free monthly games and the digital reading service remain integrated into the standard monthly fee. The separation between the delivery benefit and the seamless video experience allows the company not to burden customers who subscribe to the service primarily for the advantages of online shopping, isolating the increase in costs only for the audience highly engaged with high-fidelity audiovisual consumption.

Implementation and deadlines for consumers

The transition to the new billing model will occur automatically from April 10th for users who already paid the extra fee to remove ads. Customers will receive official communications detailing their options for canceling the add-on or remaining in the new Ultra category with the adjusted value on their monthly invoices.

Technological adequacy of devices

To take advantage of the 4K and UHD technologies restricted to the new plan, consumers need to ensure that their playback equipment has hardware support for these formats. Older Televisores or monitors with a lower native resolution will not show visual gains, even with the subscription to the higher value package.

The streaming platform automatically detects the device’s capacity at the time of playback, adjusting the video signal according to the screen limit and the speed of the internet connection. The investment in the Ultra subscription therefore requires a compatible domestic infrastructure to justify the additional monthly cost charged by the company.

Commercial strategy and advertising insertion

The introduction of commercial breaks in the base plan represents a paradigm shift for the platform, which for years used the absence of advertisements as one of its main attractions. Ads will be inserted before and during content broadcast, with advertising hours designed to be lower than that practiced by traditional open television. The campaign delivery system was developed to segment advertisements based on the user’s consumption profile, using the company’s vast database to deliver targeted and specific advertisements.

The advertising market reacted attentively to the opening of this new media inventory, considering the massive reach of the streaming platform on a global level. The sale of commercial spaces within Prime Video creates a highly profitable new line of revenue for the company, subsidizing the rising costs of producing high-budget original series. The option to pay the additional fee of US$4.99 for Prime Video Ultra works, in this scenario, as an escape route for the most demanding viewers, ensuring that the company profits both from the sale of ads and from higher-level subscriptions.

Carolina Costa é colaboradora da redação do Mix Vale, portal de notícias com cobertura de Brasil e mundo. Produz conteúdo nas editorias de economia e benefícios, com foco em informação de serviço para o leitor brasileiro. Escreve para o portal desde 2019. Formação: Administração

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