Comcast Hikes Peacock Prices Again: Will You Pay $11 A Month For Ads?
Starting July 23, Comcast’s (NASDAQ:CMCSA) Peacock streaming service will cost new subscribers $11 per month for the ad-supported plan and $17 for the ad-free version, reflecting a $3 increase.
It marked a 38% price hike for the ad-supported plan. Existing users will see the updated pricing from August 22, Bloomberg reported on Friday, citing Comcast.
In addition, Comcast introduced a new “Select” tier at $8 per month, offering current seasons of NBC and Bravo shows along with select library content.
The telecom giant’s efforts reflect its attempts to boost margins by tapping the popularity of its streaming service.
Comcast’s revenue declined 0.6% year-over-year (Y/Y) to $29.89 billion in the first quarter, topping the analyst consensus estimate of $29.76 billion.
Peacock’s paid subscribers increased by over 20% Y/Y to 41 million, while revenue grew by 16% Y/Y to $1.2 billion. It lost $215 million on sales during the quarter.
Comcast lost 427,500 video subscribers as streaming giants like Netflix (NASDAQ:NFLX) gained traction. It lost 199,000 broadband customers in the period amid rivalry with telecom companies.
On Thursday, Netflix reported second-quarter revenue of $11.08 billion, up 16% Y/Y. The revenue total beat a Street consensus estimate of $11.04 billion. The streaming giant attributed more members, higher pricing, and an increase in advertising revenue to be key revenue and operating margin drivers. Netflix issued third-quarter guidance for revenue of $11.526 billion, up 17% Y/Y. The company also raised full-year revenue guidance to $44.8 billion-$45.2 billion, up from a previous range of $43.5 billion-$44.5 billion.
Comcast stock has lost 8% year-to-date while Netflix gained 43%.
Peacock’s latest and largest price increase in its five-year history pushes it above rivals like Warner Bros. Discovery (NASDAQ:WBD) HBO Max and Walt Disney (NYSE:DIS) Hulu in cost. However, it remains cheaper than ESPN’s upcoming $30-a-month streaming service.
Price Action: Comcast stock was trading higher by 0.23% to $34.78 premarket at last check Friday.
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