Peacock's price is flying higher.
Subscription prices for Pauw, Comcast's answer to the streaming wars will increase by $2 this summer. The price adjustment is a way for Comcast's NBCUniversal to capitalize on the Summer Olympics in Paris, which will be broadcast on NBC's TV networks and streaming platform.
Peacock's ad-supported option will increase by $2 to $7.99 per month, and the ad-free offering will increase by the same amount to $13.99 per month. The annual price for Peacock with ads is $79.99, while the ad-free version costs $139.99 per year.
The price will increase starting July 18 for new subscribers, while existing customers will experience the new prices on or after August 17. The Summer Olympics start at the end of July.
Media companies have, as most still do, looked for ways to make streaming profitable lose money on the business. Advertising has been an important part of this strategy, as have price increases.
This price increase is Peacock's second in the past year. As of last August, the ad-supported Peacock's price rose from $1 to $5.99, and the ad-free price went up $2 to $11.99 per month.
While parent company Comcast touted Peacock as a bright spot during its recent earnings call, losses from the streamer have weighed on earnings. Losses are expected to peak in 2023, and executives expect them to decline in coming quarters.
Peacock offers a range of live sports content, from the NFL to the Premier League, and often sees a surge in subscribers during major events like the Olympics.
The streaming service launched in 2020, in time for the Summer Olympics in Tokyo – which were postponed to 2021 due to the pandemic. Peacock now has 34 million subscribers.
Major sporting events often attract more customers. Executives said last week that Peacock's exclusive NFL Wild Card game helped it add and then retain more customers than expected during the first quarter.
The streamer has also recently benefited from being the first exclusive home of Universal Pictures' Academy Award darling and box office hit “Oppenheimer.”
Peacock's revenue rose 54% to $1.1 billion in the first quarter compared to the same period last year. This was partly due to increased advertising revenues, which have lagged behind traditional TV networks of late.
Executives said last week that the Summer Olympics are expected to bring in record advertising revenue as more events will appear on the broadcast network NBC, in addition to being streamed exclusively on Peacock.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.