(Bloomberg) -- Black Friday isn’t just for clothing and electronics deals. Streaming services are on sale, too, and may help customers escape recent increases in subscription prices.
Shoppers liked last year’s deals. Streaming services attracted 6.9 million sign-ups to Black Friday promotions in 2023, an 82% increase from 2022, according to the research firm Antenna. Paramount Global, parent company of CBS and MTV, signed up 1.8 million customers to its Paramount+ while Walt Disney Co.’s Hulu added 1.7 million customers through those promotions, Antenna said.
This year’s deals range from a couple months to a year. Short-term markdowns may play into the hands of a growing number of consumers who stream hop — sign up for one service just long enough to binge-watch a popular show and then move on to another provider. A Black Friday discount that lasts two or three months makes that more attractive.
“For the past several years, we’ve seen every Black Friday, more services participate, with more-enticing deals and more consumers taking advantage of them,” said Jonathan Carson, Antenna’s co-founder and chief executive officer. “It’s become one of the most important days of the year for this category.”
After boosting prices by as much as 25% in October, Disney is offering two Black Friday deals that run through Dec. 2.
The ad-supported version of Hulu is available for 99 cents a month for a year, according to the company. It usually costs $9.99 a month. An ad-supported bundle that includes Disney+ and Hulu is priced at $2.99 a month for a year, beating the regular price of $10.99. Some Hulu customers can also get a year of Starz, from Lions Gate Entertainment Corp. for 99 cents a month. It usually costs $10.99 a month,
Streaming is a major priority for Disney, with the company targeting $1 billion in profit from the business in fiscal 2025. Hulu has been “a pioneer” when it comes to offering Black Friday deals and has held promos for years, according to Carson.
“The rest of the category has seen that these video subscriptions can really get attention,” he said.
Warner Bros. Discovery Inc., parent company of HBO and CNN, is offering a 70% discount on its Max streaming service, which is home to shows like House of the Dragon and The Penguin. Consumers can get the ad-supported tier of Max for $2.99 a month for six months, down from the regular price of $9.99. The deal extends through Dec. 2 and is similar to a promotion offered last year.
Warner Bros. added 7.2 million streaming customers last quarter, its biggest quarterly increase since the platform’s launch. The subscriber gains followed $1 price increases on some monthly plans that kicked in over the summer.
Peacock, from Comcast Corp.’s NBCUniversal, has two Black Friday deals through Dec. 2.
The ad-supported monthly plan is $1.99 a month for six months, instead of its usual $7.99, while the annual subscription is $19.99 instead of $79.99. NBCUniversal raised Peacock’s prices over the summer, bumping up monthly subscriptions by $2 a month and annual plans by $20.
Though NBCUniversal was the only legacy media giant to not turn a profit from streaming last quarter, the company is still committed to online video. Parent Comcast plans to spin off some of its cable channels, including MSNBC, CNBC and USA, to focus more on Peacock. The company made Peacock a key part of its 2024 Summer Olympics coverage, and the platform also hosts content from the Bravo network, NBC and Universal Pictures — businesses that will not be spun off.
For Paramount+, new subscribers can purchase either the Essential or Premium options for $2.99 a month for the first two months. The sale runs through Dec. 4.
The Premium ad-free option includes access to content from the Showtime cable network, as well as live television from the customer’s local CBS station. The Essential plan regularly costs $7.99 a month while the plan with Showtime is $12.99.
Last year, Paramount’s Black Friday offer included the Essential plan for $1.99 a month for three months or Paramount+ with Showtime for $3.99 a month for three months. Paramount+ is home to shows like Yellowjackets and Mayor of Kingstown, as well as spinoffs from the company’s popular Yellowstone franchise.
Paramount also raised its streaming prices this year, boosting Paramount+ with Showtime by $1 a month and the Essential option by $2.
Rising prices and increasing competition between streaming platforms encourage consumers to test out services at a lower cost, making the Black Friday promotions all the more attractive, Carson said.
“As is the case in all categories, Black Friday is about a good deal, and video is no exception,” he said.
©2024 Bloomberg L.P.