Peacock, the streaming service operated by NBCUniversal, has announced a price hike just in time for Summer Olympics. The cost of the streaming service will rise by $2, a move that is part of the intensifying competition among media companies for a share of the lucrative streaming market.
Since its launch in July 2020, Peacock has been offering its customers different subscription tiers. Consumers could opt for a free, ad-supported version or the premium version for $4.99 a month. Another option included Peacock Premium Plus at $9.99 monthly with no ads. NBC Universal has now decided to raise the monthly prices with Premium going for $6.99 and Premium Plus soaring to $12.99. This price rise coincides with the biggest event in the sports TV calendar – the Tokyo Olympics.
Due to the ongoing pandemic, the Tokyo Olympic Games were delayed from 2020 to 2021. While this was seen as a setback by most, for Peacock, it served as an opportunity. By offering the Olympics on its platform, Peacock is looking to capitalize on the natural excitement and viewership that come with the games, encouraging more subscriptions. The Tokyo Olympics could significantly assist it in gaining strong traction amid the ramping competition.
Peacock has grappled to find its footing in the saturated streaming market, pitting against established giants such as Netflix, Disney+, and Amazon Prime. Consumers are continuously deciding which service gives them the best value for their money. Pricing strategy plays an instrumental role in these decisions, and Peacock’s move represents a key moment in the streaming wars.
A price increment also amplifies the importance of content exclusivity. Peacock, besides the Olympics, is banking on its library of hit movies and shows. Yet, it’s also making concerted efforts to create distinguished original programming such as the exclusive streaming of WWE Network content, the new Punky Brewster series, and the Saved by the Bell reboot.
This pricing strategy can be seen as NBCUniversal’s ploy to attract new customers while generating more revenue from their existing ones. It is positioning itself as a household need, particularly for sports enthusiasts and fans of their exclusively owned content.
Given the contentious streaming wars, it remains to be seen whether the strategic price increase ahead of the Summer Olympics will be a successful maneuver for Peacock. This decision may lead to lucrative results for NBCUniversal or potentially alienate customers who are becoming increasingly price sensitive in the current economic climate. The coming months will thereby serve as an interesting test for Peacock and its place in the streaming market universe.