NBCUniversal is making Peacock even more expensive.
The popular media company recently announced it is increasing the prices of both its streaming plans in mid-August by a small amount, which could be a deal-breaker for some subscribers.
NBCuniversal's move stays true to its previous intention of cashing in on its success following the removal of Peacock's free tier for new subscribers in early February.
In this photo illustration a Peacock logo of an US video... UKRAINE - 2021/10/31: In this photo illustration a Peacock logo of an US video streaming service is seen on a smartphone. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)
A Dollar Or Two Too Far
NBCUniversal announced in a media update it is raising the price of its Premium plan and Premium Plus package by $1 and $2, respectively, per Variety. As a result, the former plan will cost $5.99, while the latter will have a $11.99 price tag come Aug. 17.
This development is the first time Peacock had a price increase since its release in 2020. It also became the latest streaming service to raise its prices, joining the likes of Netflix, Max, Paramount Plus, and Disney Plus, per The Verge.
NBCUniversal explained that the price increase would allow it to invest in content and the user experience and the highest-quality content while remaining "competitive in the marketplace."
Whether the price increase is justifiable depends on subscribers' perception of the content Peacock brings. NBCUniversal reportedly added more than 80,000 hours of content and could reach nearly 100,000 hours total by 2024, according to NBCUniversal.
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These additions include exclusive pay-1 window movies from Universal Filmed Entertainment Group; NBC and Bravo episodes next-day; streaming channels from Hallmark and Reelz; and daily morning news from CNBC and MSNBC.
Cashing In On Success
Regardless, the price increase is an inevitable fate for Peacock as streaming services need to raise their prices or embrace advertising if they want to meet investors' expectations. NBCUniversal already took steps to accelerate Peacock's profitability once it expected losses to peak at about $3 billion in 2023.
The Hollywood Reporter mentioned in its article that NBCUniversal saw Peacock's start-up losses continue despite a recent industrywide focus on efforts to boost profitability, as previously mentioned.
For instance, the company removed the free subscription tier it previously offered to new subscribers, forcing them to choose between its two paid subscription plans from the start. Meanwhile, it also stopped bundling Peacock Premium for free for Comcast's Xfinity customers.
NBCUniversal believes that doing so is a profitable move thanks to the company doubling its paid subscriber total from nine million to 20 million subscribers in 2022. Comcast, meanwhile, states that Peacock had 22 million subscribers by the end of the first quarter of 2023 - an increase of up to more than 60% year over year.
Interestingly, NBCUniversal's move of raising its prices for Peacock signals an end of an era for the video streaming industry, when companies are willing to ask for low prices for their streaming services to attract subscribers on launch. You may recall that NBCUniversal previously marketed Peacock as one of the few premium streaming services that offered a tiered approach with a free option.
Related Article: Peacock's Free Tier Is No Longer Available for New Subscribers
