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Peacock Announces Price Increase Ahead of Summer Olympics
Recently reported by The Hollywood Reporter, NBCUniversal’s streaming service, Peacock, is set to raise its subscription prices by $2 starting this summer. This change is slated to take effect on July 18 for new customers, strategically timed just a week before the opening ceremony of the Paris 2024 Summer Olympics.
Details of the Price Adjustment
For new customers, Peacock Premium will see an increase from $5.99 to $7.99 per month, while Premium Plus will rise from $11.99 to $13.99 per month. Existing subscribers will not be impacted by this change until August 17. This price hike reflects a broader trend of streaming services adjusting their subscription rates to optimize revenue streams.
Despite the price increase, there is a small window for prospective subscribers to secure the original pricing for Olympic coverage. By purchasing Peacock Premium between July 12 and July 17, customers can still enjoy the entire Olympic games at the initial $5.99 rate. However, it is essential to cancel the subscription after the closing ceremony to avoid the higher cost.
The Paris 2024 Summer Olympics are scheduled to take place from July 26 to August 11, overlapping with the price adjustment timeline. Subscribing before July 12 entails paying for more than one month, while waiting until after July 17 commits users to the new $7.99 rate.
Assessing the Value Proposition
While Peacock Premium includes advertising, the $5.99 offer for two weeks of comprehensive Olympic coverage remains compelling. Analyzing alternative streaming options for the 2024 Olympics reveals significantly higher monthly costs. For instance, Hulu + Live TV with ads is priced at $76.99 per month, while YouTube TV costs around $72.99 per month.
However, casual Peacock users might face disappointment as the service aims to extract more value from its subscribers. Comcast recently reported a notable increase of 3 million paid Peacock subscribers during its last financial quarter. This influx, combined with the upcoming price adjustments, underscores the company’s confidence in retaining its customer base despite the changes.
Looking ahead, it is conceivable that additional price hikes may occur in 2024 as streaming platforms seek to maximize profitability. Recent trends, including crackdowns on password sharing and escalating subscription fees, reflect the evolving landscape of the streaming industry. As players like Netflix, Disney, and others adapt their strategies, consumers may expect continued shifts in pricing structures and service offerings.
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