Peacocking
Peacock is the latest video-on-demand service to dip its toe in the stream of price hikes that have hit the industry recently, announcing across-the-board increases for the first time since launching in 2020.
Starting August 17th, current subscribers will see the cost of the Premium service go up $1 to $5.99 a month, while Premium Plus subscribers (who get fewer ads and downloadable episodes) will see their bills increase from $9.99 to $11.99.
Upstream
Peacock was one of the last bastions of the streaming scene that hadn’t upped costs for customers, with rival platforms Disney+, Netflix, Paramount+, Max, and Apple TV+ all increasing prices in the last 2 years. Execs at the Comcast-owned streamer explained that the move will allow them to “continue to invest in the best user experience and the highest-quality content while remaining competitive in the marketplace”.
In truth, the price hikes couldn’t come soon enough for the service that boasts over 80,000 hours of film and TV content as well as live sports such as the English Premier League and WWE. While subscribers have grown in recent years, losses incurred by the streamer, which has spent heavily to secure content, have mounted even more quickly. In the first quarter of 2022, the platform lost $456 million — a figure that ballooned to $704 million for the same period this year.
Even with the increased price point, Comcast and NBCUniversal chiefs are expecting things to get worse before they get better, forecasting losses to peak at ~$3 billion for 2023.
