NBCUniversal’s decision to shift focus away from its free tier could prove to be costly for the streaming service. With more people opting for Premium instead, it may struggle to compete against competitors who offer similar services at a reduced cost.
After canceling their paid subscriptions, users who are already on the free tier will be downgraded to restricted access to the streaming service’s content catalogue. This downgrade may not be welcomed by all users, as it means that they will have less variety and selection when compared to those who have paid for a subscription.
Starting today, Peacock’s Premium subscribers will be able to choose between two tiers: Premium Plus and Ad-Supported Premium. The Ad-Supported Premium tier costs $9.99 per month and includes the full content library, live sports and NBC and Bravo shows after they air on TV. The Premium Plus tier costs $4.99 per month and offers an ad-free experience, offline viewing support, as well as a livestream of your local NBC channel.
Disney announced that they would be discontinuing their free tier of Peacock, which many found ironic given the company’s past focus on this offering. Now, with their new focus on the Premium tier, it seems Disney may have realized that this is what consumers want and are willing to pay for.
Peacock’s latest move is likely aimed at breathing new life into the streaming service, which has seen its subscriber numbers dwindle in recent years. With Javier Mascherano, Lionel Messi, and other celebrities now exclusively streaming their content on Peacock Premium and Telemundo, it looks as though the company is hoping to court more high-profile users. However, with competition from rivals like Netflix and Amazon Prime Video stiffing customers with cheaper pricing options, it remains to be seen how successful Peacock will be in reversing its downward trend.