Peacock Raises Prices, Ad-Supported Plan Now More Expensive Than Most Competitors

Peacock has raised its prices by $3 across both of its plans, making its ad-supported option more expensive than nearly all of its competitors, including Netflix, HBO Max, and Disney+. The new rates are $10.99/month for the ad-supported plan and $16.99/month for the ad-free plan. The price hike is likely in preparation for the NFL's return in September and other tentpole fall NBC programming.

Peacock, the streaming service owned by NBCUniversal (NBCU), has announced a significant price increase across both of its subscription plans. The ad-supported tier will now cost $10.99 per month, a $3 increase from its previous rate, while the ad-free plan will be priced at $16.99 per month, up from $14.99 [1].

The price hike is expected to be a strategic move to accommodate the upcoming return of the NFL in September and other major NBC programming events. NBCU has been investing heavily in sports content, particularly the NBA, which is set to arrive on Peacock in October. The NBA deal alone costs NBCU $2.45 billion annually [1].

The new pricing structure positions Peacock as the most expensive ad-supported tier among major streamers, surpassing competitors like Netflix, HBO Max, and Disney+. However, NBCU believes that the additional cost is justified by the extensive sports content it offers. In the fiscal year ending in May 2023, Peacock's ad volume grew by 20% and accounted for nearly one-third of all NBCU upfront dollars [1].

To mitigate potential churn, Peacock is introducing a new $7.99 ad-supported tier called "Peacock Select." This tier will provide access to next-day NBC and Bravo entertainment content but will exclude sports programming and original series like Love Island and The Traitors [1].

Additionally, Peacock is continuing to offer annual plans, which allow users to lock in a 12-month subscription for the price of 10 months. The cost of these plans has also increased, reflecting the new monthly rates.

The price hike is not entirely unexpected given the trend of increasing prices across the streaming industry. Competitors such as Apple TV+, Disney, and Hulu have also raised their prices in recent years, often in anticipation of major content investments [1].

In summary, Peacock's price increase is a strategic move to accommodate its growing sports content library and position itself as a competitive streaming option. The new pricing structure aims to balance the need for revenue with the potential for subscriber churn.

References:
[1] https://www.vulture.com/article/peacock-price-increase-2025.html