Peacock TV, NBCUniversal’s streaming service, has announced price hikes for its subscription tiers, increasing the ad-supported tier by $1 and the mostly ad-free Premium Plus tier by $2, bringing it to $11.99 per month. This marks the first price increase since Peacock’s launch.
While Peacock has seen subscriber growth, the streaming sector was not highlighted in NBCUniversal’s recent restructuring announcement. The company’s president, Mike Cavanagh, praised Peacock’s $2 billion annual revenue but downplayed the streamer’s $704 million losses in the first quarter of 2023, which nearly doubled compared to the previous year. Peacock currently ranks eighth in U.S. streaming viewership, according to Nielsen, behind competitors like HBO Max and Tubi.
Susan Rovner, who played a key role in Peacock’s programming strategy, is set to leave NBCUniversal, with film chief Donna Langley assuming oversight of TV operations. Peacock’s losses have been attributed to excessive programming expenses.
To address these challenges, NBCUniversal could follow Paramount Global’s strategy. Paramount recently announced a fall lineup that focuses on scripted programming across its offerings, including broadcasting the cable hit “Yellowstone.” With the ongoing strikes by SAG-AFTRA and the WGA, adjustments to NBC’s fall schedule are likely.
Peacock TV has a catalog of crime dramas and original comedies, featuring popular faces from NBC programming such as Pete Davidson and Craig Robinson. Leveraging these shows’ existence on Peacock could help NBCUniversal maximize content availability during the strikes, especially if their broadcast efforts are also affected.
As streaming investments have impacted Paramount Global’s financials, it makes sense for companies like NBCUniversal to capitalize on their streaming content in the face of potential broadcast challenges.