The price of Peacock, Comcast’s streaming platform, is set to increase by $2 this summer. This adjustment by NBCUniversal aims to capitalize on the upcoming Summer Olympics in Paris, which will be broadcasted on NBC’s TV networks and on Peacock. The ad-supported option of Peacock will see a price hike to $7.99 a month, while the ad-free version will rise to $13.99 a month.
Media companies, including NBCUniversal, have been striving to make their streaming services profitable. Despite the increasing popularity of streaming platforms, many companies still face losses in this area. Advertising and price increases have become crucial strategies for achieving profitability.
This recent price increase is the second one for Peacock in the past year. In August, the prices of the ad-supported and ad-free versions rose by $1 and $2 respectively. Even though Comcast has highlighted Peacock as a bright spot in their recent earnings call, losses from the streaming service have impacted overall earnings. However, executives are optimistic that the losses will narrow in the coming quarters.
Despite the challenges, Peacock has shown promising growth in subscribers. With 34 million subscribers currently, Peacock has become popular for its live sports content, including NFL and Premier League games. The platform also saw an increase in subscribers during major events like the Summer Olympics in Tokyo, which was held in 2021 due to the pandemic.
In the first quarter of this year, Peacock’s revenue soared by 54% compared to the same period last year, reaching $1.1 billion. This growth can be attributed to increased advertising revenue, which has outperformed traditional TV networks. Additionally, strategic partnerships like the exclusive streaming rights to Universal Pictures’ “Oppenheimer” have helped attract and retain subscribers.
Future Outlook and Revenue Expectations
With the upcoming Summer Olympics, NBCUniversal anticipates record advertising revenue, as more events will be shown on NBC and streamed exclusively on Peacock. The success of exclusive content like the NFL Wild Card game and “Oppenheimer” has positioned Peacock as a competitive player in the streaming wars. As the company continues to focus on subscriber growth and profitability, Peacock is expected to play a significant role in NBCUniversal’s overall strategy.