Peacock, the NBCUniversal streaming service, has announced it will be increasing the prices for its ad-free and ad-supported options by $2 each, with the ad-free service now costing $13.99 a month and the ad-supported option costing $7.99 a month. The annual prices will also see an increase, with the ad-free version being priced at $139.99 and the ad-supported version at $79.99. These changes will go into effect for new subscribers on July 18, just ahead of the 2024 Olympic Games in Paris, while existing customers will see the new pricing on or after August 17. Even with these increases, Peacock’s pricing remains competitive compared to other streaming platforms, with Netflix’s top-tier subscription costing $22.99 a month and Disney+ matching Peacock’s prices once the changes take effect.
Despite the price increases, Peacock continues to see steady growth in subscribers, with the service currently boasting 34 million subscribers, capturing 1.3% of the total TV market according to Nielsen data. This puts Peacock ahead of competitors like HBO Max and Disney+, but still well behind streaming giant Netflix, which holds 7.7% of the market share. Overall, streaming viewership continues to rise, with viewership in March seeing a 12% year-on-year increase and accounting for nearly 40% of all TV consumption. Traditional media companies are still fighting for viewership in the crowded streaming market, with Paramount CEO Bob Bakish stepping down as the company pushes its Paramount+ service.
Streaming platforms are facing challenges like “subscription fatigue,” as viewers are becoming reluctant to subscribe to multiple services. In response to this, platforms like Pluto TV and Tubi are introducing advertising-based video-on-demand channels as an alternative to subscription-based models. While Peacock has not yet implemented limits on password sharing, other platforms like HBO Max and Disney+ have announced plans to restrict account access in the future. Despite not yet turning a profit, Peacock continues to add users steadily and has seen a significant increase in users thanks to exclusive content like NFL games.
YouTube, which is owned by Google parent Alphabet, currently dominates the streaming market with a 10% market share, surpassing traditional media companies and streaming platforms. As streaming platforms battle for viewership and market share, they are raising prices and introducing new features to attract and retain users. With the rise of streaming platforms, traditional TV networks are also facing stiff competition, as more viewers opt for streaming services over traditional cable subscriptions. The streaming landscape is likely to continue evolving as platforms adapt to changing consumer preferences and behaviors.
