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Peacock has raised the price of its streaming service in a bid to boost its falling profits.
A $2-a-month increase takes effect on Thursday, raising the price of the standard service (called “Premium”) to $7.99. The annual cost increases by $20, from $59.99 to $79.99.
Both represent a whopping 33 percent price increase.
‘Premium Plus’ also goes up $2 to $13.99 per month and $20 to $139.99 per year.
New subscribers will pay higher prices on all plans starting today, and existing subscribers will see the effect starting August 17.
Peacock is the latest to raise prices as streaming TV services look to cash in on businesses that have so far lost money.
Peacock, which has Yellowstone on its service, is raising prices by $2 per month
They have been willing to spend on big-budget shows (but offer subscriptions at reduced prices) in an attempt to attract customers, but now investors want to see a return.
Peacock, the streaming division of Comcast’s NBCUniversal, is raising prices ahead of the Olympics. The event streams exclusively on NBC and Peacock.
This is Peacock’s second price increase in the past year.
Customers reacted to Paramount’s price hike on social media.
“It’s time to cancel,” the customer wrote on Reddit.
Another user summed up the opinion of several people on the site: ‘For $6 this was a ‘nice to have’ service, as someone above summed up perfectly.
“But from what I hear on this sub, it’s far from a necessity.”
Some suggested that one solution is to cancel and take advantage of one of the promotional offers.
On Reddit, one person wrote: “There’s no reason to pay full price for Peacock. They offer $20 deals on annual plans all year long. I upgrade to the ad-free version so it’s getting a little pricey after this.”
As more and more streaming services have flooded the market, companies have had to raise their prices and alter their business models in an attempt to improve profitability.
Peacock’s price hikes are the latest for streaming service customers.
In late June, it was announced that the price of Paramount+ Essential would rise by $2 to $7.99 for new customers, a 33 percent increase. Current customers pay the same.
Spotify announced that the cost of its ad-free premium subscription plan ‘Individual’ in the US will increase by $1 per month to $11.99
The streaming service is also raising the price of its Showtime bundle by $1, up to $12.99, for both new and existing customers. The price increases go into effect on August 20.
Warner Bros. Discovery has raised the price of its ad-free Max subscription for the second time this year.
The price increase from $1 to $16.99 per month for the ad-free tier went into effect last month for new subscribers.
The ad-free ‘ultimate’ option, which offers 4k streaming and the ability to run four accounts at once, will also rise by $1 to $20.99.
Spotify also announced last month that the cost of its ad-free individual premium subscription plan in the US will increase by $1 per month to $11.99.