Comcast’s
NBCUniversal alerted Peacock subscribers that the streaming service was rolling out its first price increase since launching in 2020.
Starting Aug. 17, the monthly price for Peacock premium subscribers will increase by $1 to $5.99, while the monthly price for the Premium Plus tier will rise by $2 to $11.99. The company rolled out the price increase for new subscribers, effective immediately.
The move comes as Wall Street dials up the pressure on media companies to make streaming services profitable. Hollywood actors and writers are also on strike, effectively shutting down U.S. film and television production. Eventual deals could put pressure on streaming service profits.
“I think there’s tolerance for price increases, even if consumers dislike them, both because there are options for lower-cost subscriptions via advertising-supported tiers and also because consumers save money as they continue to ‘cut the cord’ of their traditional video services,” Brian Wieser, founder of the strategic advisory firm Madison and Wall, told Barron’s.
Wieser noted that in 2022 there was $100 billion in annual spending on pay TV, but only $30 billion of spending on streaming.
“There should be room for consumers to transition their budgets,” he said.
Comcast
said in April that paid subscribers to Peacock in the U.S. rose 60% year over year to 22 million in the first quarter of 2023. Peacock revenue jumped 45% to $685 million.
The service includes shows like The Office and live sports. The Premium Plus offering cuts out ads on most shows and includes a 24/7 stream of the user’s local NBC Channel.
Comcast shares were rising 0.8% to $42.44 on Tuesday.
Write to Connor Smith at [email protected]
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