Peacock Announces Price Hike for Subscribers, Citing Need for Investment in Content
Peacock, the popular streaming service, has notified its subscribers of an impending price hike. Beginning August 17, existing customers will see an increase in their subscription prices, while new customers will be affected immediately. This is the first time Peacock has raised its prices since its launch.
The new pricing structure will see the Premium (ad supported) plan increase from $4.99 to $5.99 per month. Meanwhile, the Premium Plus (ad-free) plan will receive a $2 raise, bringing it to $11.99 per month.
The company claims that the price hike is necessary to continue investing in high-quality content and improve user experience. Additionally, it will allow Peacock to remain competitive in the marketplace, as streaming rivals like Netflix and Max charge upwards of $19.99 per month. Apple TV+ also raised its subscription cost to $6.99 per month last year.
Compared to Paramount+, which recently increased its ad plan to $5.99 per month and introduced a new ad-free tier at $11.99 per month, Peacock will be similarly priced. However, Peacock lacks the extensive collection of Showtime originals that Paramount+ boasts.
Despite this, Peacock highlights its success in the live sports arena, offering the largest selection of live sports content among direct-to-consumer streaming services in the U.S., with over 5,000 hours available. This includes coverage of events such as the Women’s World Cup, Sunday Night Football, Premier League, and Big 10.
In addition to its sports offering, Peacock provides subscribers with daily live news, 24/7 streaming channels, and a variety of original titles like “Poker Face,” “Mrs. Davis,” “The Continental,” “Bel-Air,” “Dr. Death,” “Based on a True Story,” and “Bupkis.” The streaming service also boasts next-day access to all new shows from NBC and Bravo.
Since its launch in 2020, Peacock has released over 80,000 hours of content, making it a substantial player in the streaming industry.
The price hike comes as Peacock reported losses of $704 million in the first quarter of 2023, an increase from $456 million in the same period last year. In an effort to generate profit, Peacock has shifted away from its free offering, eliminating the option for new customers. Additionally, the ad-supported tier is no longer bundled at no extra charge for Xfinity customers.
As Peacock works to solidify its position in the streaming market, subscribers can expect higher subscription prices but a continued investment in quality content and an improved streaming experience.