Comcast’s (NASDAQ:CMCSA) subsidiary NBCUniversal is making its Peacock streaming service slightly more expensive by increasing the monthly prices, beginning on August 17. This will mark the first price hike for Peacock since its launch in 2020.
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Peacock’s Premium plan, which includes ads, will see a $1 increase to $5.99 per month, while the Premium Plus plan, which is ad-free, will undergo a $2 price hike to $11.99 per month. It is worth mentioning that Peacock’s free-to-watch option with ads was discontinued earlier this year.
Key Reason for Price Hike
The price increase comes as the company faces losses and makes substantial investments in live coverage and original content development.
During the first quarter of 2023, Peacock experienced losses of $704 million, a substantial increase from $456 million in the same quarter of the previous year. However, there was positive growth as the subscriber base grew by 60% year-over-year to 22 million. Comcast stated that it anticipates losses for the Peacock service to come to nearly $3 billion this year.
Nothing Unusual in This Action
NBCUniversal’s price hike for its Peacock streaming service aligns with a broader trend in the industry. Many streaming companies, including Warner Bros. Discovery (WBD), Netflix (NFLX), Walt Disney (DIS), and Paramount (PARA), have also raised subscription charges for their platforms recently.
The price hike supports companies’ efforts to remain competitive, balance the costs of producing original content, secure exclusive rights to popular shows and movies, and expand their streaming offerings while maintaining profitability.
What is CMCSA’s Price Target?
The consensus rating of the 14 top Wall Street analysts who recently rated CMCSA stock is a Moderate Buy. This is based on nine Buy, four Hold, and one Sell ratings assigned in the past three months. Further, the average CMCSA stock price target of $45.86 implies 8.96% upside potential from current levels.
It is noteworthy that these top analysts have an impressive history of helping investors generate massive returns from their recommendations.
Comcast’s stock has been good to its investors lately, with the stock up 20.1% year-to-date.
