This month, Peacock, the streaming service owned by Comcast, increased the prices for its premium tiers in anticipation of the upcoming Olympic games in Paris. In response to the anticipated cost hikes, about half a million Peacock subscribers decided to cancel their subscriptions before the new rates took effect. According to Comcast’s shareholder report for Q2 2024, Peacock lost 500,000 paying subscribers between April and June.
Comcast had previously reported an inflated subscriber count for Peacock in its Q1 2024 results, claiming 34 million subscribers. However, it was later revealed that the actual number was 33.5 million, as Comcast had rounded up. With the recent subscriber losses, Peacock now has approximately 33 million paid subscribers.
Despite the substantial subscriber base, Comcast has yet to achieve profitability with Peacock. The latest report indicates that Peacock lost $348 million in the second quarter, which, although an improvement over previous losses, still shows a significant financial deficit.
Comcast’s investment in media rights for the Olympics, costing $7.65 billion through 2032, adds to the financial strain, given the extensive and costly lineup of sporting events it streams.
In response to the financial pressures and the need to recoup investments, Peacock has increased its subscription rates. The monthly cost for Peacock Premium is now $7.99, while Peacock Premium Plus has risen to $13.99. Annual subscription rates have also been adjusted, with Peacock Premium now at $59.99 and Peacock Premium Plus at $139.99.
These new rates are effective for new subscribers immediately and will apply to current subscribers starting from their next billing date on or after August 17.
The price increases are seen as a strategy to offset the losses and the high costs associated with securing sports broadcasting rights. Despite these changes, Comcast continues to face challenges in turning Peacock into a profitable venture amid ongoing competition and substantial investments in content.
