Peacock Raises Subscription Prices for Fourth Straight Year
NBCUniversal's Peacock has increased its subscription prices for the fourth consecutive year, with ad-free plans now matching Netflix's standard pricing at $19.99/month.
Peacock's Latest Price Hike
NBCUniversal's Peacock has raised its subscription prices for the fourth consecutive year, continuing an industry-wide trend of escalating streaming costs. As of this week, the ad-supported plan increased from $10.99 to $12.99 per month, while the ad-free tier rose from $16.99 to $19.99-matching Netflix's standard ad-free pricing. Existing subscribers have until September 17 before the new rates take effect.
The Broader Trend of 'Stream-Flation'
Peacock's move reflects a wider pattern among major streaming services, all of which have raised prices in the past year. Individually subscribing to ad-free versions of Netflix, Disney+, Hulu, HBO Max, Peacock, Paramount+, Apple TV+, and Amazon Prime Video would now cost over $137 monthly. Bundling options, such as the Disney+-Hulu-HBO Max package ($32.99/month), can reduce costs, but standalone ad-free plans continue to climb.
Shifting Consumer Preferences
With rising prices, nearly half (48%) of premium streaming subscriptions now opt for ad-supported tiers, up from 39% in early 2024, according to Antenna. Ad-tier sign-ups accounted for 59% of new subscriptions in June, while cancellations of ad-free plans outpaced new enrollments in Q1. Free ad-supported platforms like Tubi and The Roku Channel have also gained traction, claiming 19.1% of US TV viewership in May.
Peacock's Content Strategy
Unlike rivals investing heavily in originals, Peacock leans on reality TV (e.g., Love Island, Bravo franchises) and licensed content (The Office). Its recent profitability-its first ever-hasn't deterred further price hikes. The bare-bones 'Peacock Select' tier, offering limited NBC and Bravo content, also rose by $1 to $9/month.
Industry Implications
Analysts warn that free tiers risk undermining paid subscriptions if they offer too much content. 'Give away too little, and consumers won't engage. Give away too much, and you erode the subscription model,' said Paolo Pescatore of PP Foresight. Meanwhile, services like Netflix and Disney are experimenting with free ad-supported tiers to attract budget-conscious viewers.
What Subscribers Can Do
Consumers facing higher costs can switch to ad-supported plans, exploit bundles, or rotate subscriptions. For example, pairing Peacock with Apple TV+ (total: $19.99/month) costs the same as Peacock's ad-free tier alone. Alternatively, dropping ad-free plans entirely could save over $60/month across major services.
The Bottom Line
Peacock's pricing aligns with an industry prioritizing revenue over retention. As streamers test free tiers and tighter bundles, subscribers must weigh cost against convenience-and decide whether Love Island is worth $20 a month.
