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.
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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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