Peacock Hikes Prices, Unveils New Tier as NBA Streaming Era Begins
Peacock, NBCUniversal's streaming service, has announced its most significant price increase to date, impacting both ad-supported and ad-free tiers. The move coincides with Peacock's aggressive expansion into live sports, spearheaded by a new 11-year agreement to stream NBA games. Alongside the price hikes, Peacock is introducing a new, more affordable tier called "Peacock Select" to offer users a wider range of choices.
Price Increases Take Effect for New and Existing Subscribers
The price changes will be rolled out in two phases. New subscribers will see the updated pricing starting July 23, 2025, while existing subscribers will experience the increases beginning August 22, 2025. The price hike affects both the Premium (ad-supported) and Premium Plus (ad-free) tiers.
New Pricing Details: Premium, Premium Plus, and Select
Here's a breakdown of the new pricing structure:
- Peacock Premium (Ad-Supported): Increasing from $7.99 to $10.99 per month, and from $79.99 to $109.99 per year.
- Peacock Premium Plus (Ad-Free): Increasing from $13.99 to $16.99 per month, and from $139.99 to $169.99 per year.
- Peacock Select (New Tier): Priced at $7.99 per month or $79.99 per year.
The "Peacock Select" tier will provide access to current seasons of popular NBC and Bravo shows, along with a selection of library content.
NBA Streaming Deal Fuels Price Adjustments
The driving force behind these price increases is Peacock's significant investment in live sports, particularly its acquisition of NBA streaming rights. Starting in the fall of 2025 (October 2025 for live games), NBC and Peacock will begin streaming NBA games as part of an 11-year agreement. The deal includes 99 national regular-season games across Peacock and NBC, 50 Peacock-exclusive games, and over 30 playoff games. In January 2026, "Sunday Night Basketball" will launch across both platforms, offering three consecutive nights of national NBA coverage.
Peacock's Subscriber Growth and Financial Performance
Peacock has experienced growth in recent quarters. In Q1 2024, the service reported reaching 41 million subscribers, a 5 million increase from the previous quarter. The streaming service also narrowed its losses to $215 million, a significant improvement from the $639 million loss in Q1 2023. Comcast's Q2 2024 earnings report revealed a 38% year-over-year increase in paid subscribers, reaching 33 million, although the platform also shed 500,000 subscribers during the same quarter. Peacock's revenue increased by 28% to $1.0 billion in Q2 2024.
Competitive Positioning and Content Strategy
NBCUniversal executives believe that Peacock has been "underpriced" compared to its competitors in the streaming market. Peacock aims to differentiate itself through live sports content, claiming that by 2026, it will stream more live sports content than Amazon Prime, Paramount+, Hulu, HBO Max, Apple TV, and Netflix combined. This strategy is intended to attract and retain subscribers in a highly competitive landscape.
Concerns Over Price Hikes and Subscriber Churn
The price increases have sparked debate among consumers and industry analysts. The $3 increase is considered a substantial hike, especially when compared to the ad-supported tier's initial launch price of $4.99. This represents an increase of over 30% for the ad-supported option. Some fear that the repeated price increases could lead to subscriber churn as households re-evaluate their streaming budgets and prioritize services.
Value Proposition Questioned
While the addition of NBA rights is a major draw for sports fans, some question whether a $3 price increase is justified for those who do not prioritize sports content. The value proposition of Peacock's offerings is under scrutiny, particularly as the ad-supported tier becomes more expensive than some competitors' ad-supported options. The "Peacock Select" tier, while cheaper, may not offer enough content to satisfy users seeking a more comprehensive library.
