In what might cause a stir, Peacock, the streaming service developed by NBCUniversal, is implementing a price hike for the first time since 2020. This development emerges during the ongoing strikes led by the WGA and SAG-AFTRA, with writers and actors advocating for improved pay and employment conditions, among other concerns.
With the upcoming adjustment, Peacock’s premium tier will experience a $1 per month increment, and the Premium Plus tier will rise by $2 per month. Following these changes, Premium will be priced at $5.99 per month, and Premium Plus at $11.99 per month. The Premium Plus tier, which is virtually ad-free and includes live and local programs from local NBC channels, allows subscribers to download programs. Notably, Peacock is not the only streaming service to raise prices recently, with the escalation in tiered services, cost increases, and inclusion of ads becoming standard.
Why the Increase in Prices?
What’s striking, however, is Peacock’s decision to surge prices in the midst of widening pay disparities between creative personnel and executives. There’s no signal that this price hike will benefit the creators producing the content for Peacock – creators who are currently protesting against media companies like NBCUniversal. This comes as the fall programming lineup appears thin, forcing networks like CBS to scramble for content. It remains to be seen what added value this price increment will offer.
Image via Peacock
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Peacock reported having 22 million subscribers as of March 2021. It has seen significant growth since pivoting from its original free, ad-supported model towards paid subscriptions. However, Peacock still trails behind services like Disney+, Netflix, and Prime Video. Furthermore, the company’s losses are projected to peak this year at $3 billion, with the earlier expectation of breaking even by 2024 now seeming overly optimistic.
The recent increase in prices and other concerning trends in the streaming sector hint at deep issues within the business model. As prices continue to rise and streaming services become more fragmented, leveraging familiar IPs to bolster each corporation’s personal streaming service, the model appears less sustainable and succumbs to the same issues that streaming was intended to solve. With ads, inflated pricing, and overused reruns of popular shows supporting struggling networks, streaming services are beginning to resemble the cable era they were supposed to replace.
Frequently Asked Questions (FAQs) about streaming services
Why is Peacock raising its prices?
Peacock is raising its prices to adjust for various factors such as operational costs, content acquisition, and investment in new features and programming.
Will the price increase benefit the creators on Peacock?
There is no indication that the price increase will directly benefit the creators on Peacock. The strike by writers and actors is focused on improving pay and employment terms, and it remains to be seen if their demands will be met.
How does Peacock’s price hike compare to other streaming services?
Peacock’s price hike is in line with recent trends in the streaming industry. Other services have also implemented price increases as they strive to cover rising costs and secure profitability in an increasingly competitive market.
Is Peacock struggling compared to other streaming platforms?
While Peacock has experienced growth since transitioning to a paid subscription model, it still lags behind industry giants like Disney+, Netflix, and Prime Video. Peacock’s losses are projected to peak this year, and it faces challenges in catching up with its more established competitors.
Does the increase in prices indicate issues with the streaming industry?
The price hike, along with other concerning shifts in the streaming landscape, highlights some challenges within the streaming business model. Rising prices, content fragmentation, and the inclusion of ads are reminiscent of the issues that streaming aimed to overcome, potentially impacting the long-term sustainability of the industry.
More about streaming services
- Peacock Official Website
- Writers Guild of America (WGA)
- Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA)
- Variety: Peacock Raises Subscription Prices
- Deadline: Streaming Services Price Increase Trend
- The Hollywood Reporter: Challenges in the Streaming Industry
