NBCUniversal has announced plans to increase subscription fees for its streaming service, Peacock, set to take effect this summer. This marks the second price hike within a year, with the previous increase implemented just one year prior, which will apply to new customers ahead of the 2024 Olympics.
Subscribers of Peacock Premium, which includes ads, can expect a $2 increase in their monthly subscription fee, starting in mid-July, bringing it to $7.99 per month. Similarly, Peacock Premium Plus, offering mostly ad-free content, will also see a $2 hike in its monthly fee, now priced at $13.99 per month. Additionally, the annual subscription rates for Peacock Premium’s annual price will rise from $59.99 to $79.99, while Premium Plus will increase from $119.99 to $139.99 per year.
For new customers signing up for the service, the revised pricing for Peacock subscriptions is scheduled to come into effect from July 18 whereas the new prices for existing subscribers will be applicable from their next billing date falling on or after August 17.
Notably, Peacock Premium Plus, the subscription tier offering ad-free content, provides subscribers with a comprehensive streaming experience including download capabilities for episodes, and access to live local NBC channels, However, a “small amount of programming” on certain Peacock channels, events, and select shows and movies still contain advertisements as per NBCUniversal.
Furthermore, Peacock, the streaming service available exclusively in the United States, boasted a subscriber base of 34 million users as of the end of the first quarter of 2024. This figure reflects a notable 55% increase from the previous year, however, falls short of competitors such as Netflix and Disney+. Notably, the average revenue per subscriber stood at $10 per month in the first quarter and experienced a net gain of 3 million subscribers.
Initially launched in 2020 with low-priced and ad-supported tiers aimed at attracting consumers, the recent price adjustments by Peacock highlight NBCUniversal’s shift towards prioritizing profitability in its direct-to-streaming business model. Additionally, last year the company discontinued Peacock’s free tier for new users and ended bundling Peacock Premium for free with Comcast’s Xfinity subscriptions.