Peacock raising prices by $2 ahead of the Summer Olympics as streaming wars rage on

The NBCUniversal streaming service Peacock plans to raise prices for its ad-free service by $2 to $13.99 a month ahead of this summer's Olympic Games in Paris as competition for online viewers intensifies.

Peacock’s ad-supported option will also increase by $2, to $7.99 a month. The annual ad-free price will be $139.99, while the version with ads will be $79.99.

The price changes will take effect for new subscribers starting July 18, one week ahead of the 2024 opening ceremony. Existing customers will see the new pricing on or after Aug. 17.

Even with the latest increases, Peacock still stands on the lower end of streaming platform price ranges. Netflix's top-tier subscription costs $22.99 a month, while ad-free Hulu is $17.99 and premium Max (formerly HBO Max) is $19.99. Peacock's newest prices will match those of Disney+ once the changes take effect.

Peacock has 34 million subscribers, giving it about 1.3% of the total TV market, according to Nielsen data. That compares with 1.2% for Max, 1.9% for Disney+ — and 7.7% for Netflix.

Overall streaming viewership continues to climb, having risen 12% in March year-on-year, according to Nielsen, and it now commands nearly 40% of all TV consumption. Yet the platforms are still aggressively fighting for viewers. The latest casualty of that battle is Bob Bakish, who is stepping down as CEO of Paramount as it continues to push its Paramount+ service, with mixed results.

While traditional media companies are the main players in the streaming race, it is a traditional tech company that now dominates: YouTube, which is owned by Google parent Alphabet, attracts the largest share among streaming platforms, with 10% of the entire market alone.

Streaming platforms continue to raise prices even in the face of "subscription fatigue," a phenomenon that other players have begun capitalizing on with the introduction of advertising-based video-on-demand channels like Pluto TV and Tubi.

“Because we know that subscription fatigue is setting in, people will only pay so much for subscriptions," Pluto TV CEO Tom Ryan said in a speech last fall. "You need the ability to actually expand your bundle for free.”

While the service is not yet profitable, Peacock continues to add users at a steady clip. It got an outsize bump in users thanks to the NFL playoff game it showed last season, most of whom have stayed with the service, executives said on Peacock parent Comcast's most recent earnings call. Peacock is also set to exclusively stream the 2024 NFL season's kickoff game Sept. 6 in Brazil.

Streaming platforms have also sought to protect their revenues from password sharing. While Peacock has not done so, many apps continue to announce new limits on the practice. In March, Max, which is owned by Warner Bros. Discovery, said it would start limiting individual account access next year, following similar announcements by Netflix and Disney+.

Disclosure: Comcast is the parent company of NBCUniversal and NBC News.