Peacock, the streaming service launched by Comcast, is set to increase its subscription prices by $2 in anticipation of the upcoming Summer Olympics. This price adjustment is aimed at capitalizing on the popularity of the sporting event, which will be broadcasted on NBC’s TV networks and streaming platform.
Starting from July 18, new subscribers will have to pay $7.99 per month for Peacock’s ad-supported option, while the ad-free offering will cost $13.99 a month. The annual prices for these plans will be $79.99 and $139.99, respectively. Existing customers will experience the price hike on or after August 17.
Peacock’s decision to increase its prices is part of a larger trend among media companies in the streaming industry. While many platforms still struggle to turn a profit, they have turned to advertising and price adjustments as strategies to increase revenue.
This is not the first time Peacock has raised its prices. Last August, the ad-supported plan saw a $1 increase to $5.99 per month, while the ad-free plan went up by $2 to $11.99 per month.
Despite being considered a bright spot for parent company Comcast, Peacock has caused losses that have impacted overall earnings. However, executives expect these losses to narrow in the coming quarters after peaking in 2023.
One of the factors contributing to Peacock’s success is its range of live sports content, including NFL and Premier League games. Major sporting events like the Olympics often attract more subscribers. In fact, Peacock gained momentum during the first quarter of this year due to its exclusive NFL Wild Card game.
The streaming service has also benefited from exclusive content such as Universal Pictures’ critically acclaimed film “Oppenheimer.” Additionally, Peacock’s revenue increased by 54% to $1.1 billion in the first quarter compared to the same period last year, partly due to increased advertising revenue.
Executives anticipate that the Summer Olympics will bring in record advertising revenue for Peacock, as the event will be featured on both NBC’s broadcast network and the streaming platform.
In conclusion, Peacock’s decision to raise its subscription prices by $2 is a strategic move to capitalize on the upcoming Summer Olympics. The increase comes as media companies in the streaming industry seek ways to make their platforms profitable. Peacock’s diverse live sports content and exclusive offerings have contributed to its success, and the anticipated surge in subscribers during the Olympics is expected to drive record advertising revenue.
