NBCUniversal’s streaming platform, Peacock, is set to increase its subscription prices for both monthly and annual plans starting July 18 for new subscribers, and from August 17 for existing customers. The announcement, which is the second price increase in a year, comes shortly after Comcast revealed a significant 55% increase in Peacock’s subscriber count, totaling 34 million, with an additional 3 million new paid subscribers in the first quarter of 2024.
The price adjustment will see Peacock Premium rise from $6 to $8 per month and Peacock Premium Plus from $12 to $14. Annual rates will also climb with the Premium plan increasing from $60 to $80, and Premium Plus from $120 to $140.
This price hike coincides with the upcoming 2024 Summer Olympics in Paris, where Peacock will feature extensive live coverage. Additional offerings include interactive tools and multi-view features aimed at enhancing the user experience during the games. The timing of the price increase aligns with a broader strategy to capitalize on high-profile events to attract and retain subscribers.
Despite the increases, Peacock maintains a free, ad-supported tier. However, it is closed to new accounts except through special promotions such as free access to Peacock Premium for Xfinity Internet or Instacart Plus customers.
INSIDER TAKE
Peacock’s decision to increase prices follows a broader industry trend seen in 2023, where major streaming services like Netflix, Disney+, and Hulu also implemented higher fees. The move reflects ongoing efforts across the industry to offset the costs of content acquisition and production, as well as to improve profitability amidst intensifying competition.
Looking ahead, the challenge for Peacock will be to manage the balance between growth in subscriber numbers and the potential subscriber churn that might result from the price increase. With the platform’s losses reportedly peaking in 2023 and an optimistic outlook for narrowing these losses, the focus will likely remain on enhancing content offerings and leveraging live sports and exclusive events to drive both ad-supported and subscription revenue.
While the price hike may present a short-term challenge for subscriber retention, the strategic enhancements and timing with major events like the Olympics could solidify Peacock’s position in the competitive streaming landscape.
