NBCUniversal has announced Peacock‘s first price increase since the streaming platform launched in the summer of 2020.
Per The Hollywood Reporter, the price hike will take effect in one month’s time on Thursday, Aug. 17. The price of Peacock’s Premium tier will raise by $1, bringing it to $5.99 per month. Meanwhile, the price of the Premium Plus tier will raise by $2, bringing it to $11.99 per month. These price changes will apply to both new and existing subscribers.
Why is Peacock raising its prices?
According to NBCUniversal, the price increase will allow Peacock to “continue to invest in the best user experience and the highest-quality content while remaining competitive in the marketplace.” Notably, Peacock’s subscriber count reached nearly 22 million during the first quarter of 2023.
NBCUniversal also noted that Peacock has added over 80,000 hours of content since its initial launch three years ago. However, the company is still trying to make the streaming platform profitable as its start-up losses persist. Peacock is estimated to lose approximately $3 billion in 2023, even with the streaming platform’s new price hike.
Of course, Peacock is only the latest major streaming platform to raise its prices after launching. Disney+, Netflix, Apple TV+, Paramount+, and Max have all done the same as of late. In the early days of the so-called streaming wars, companies were willing to price their services relatively low, so as to attract more subscribers in an increasingly competitive market. As previously mentioned, however, the focus has now largely shifted to profitability, resulting in the aforementioned price hikes.