Peacock

Comcast to Spend $2 Billion on NBCU’s Peacock Streaming Service in First Two Years

Key details for Peacock streaming service:
1) Launching in April
2) 15K hours of content
3) Free for Comcast pay-TV subscribers w/ more options coming soon (we think 🤞)
4) $2B budget over 2020-21
5) Estimated break-even by year 5
6)
 Comcast has 6M+ broadband-only customers

PSA: $2B = 1% of annual revenue for Comcast…

Quick math on the advertising model for Peacock:
1) 
Ad minutes/hour – 3-5
2) 
30s spots/hour – 6-10
3) Ad revenue/user/month – $5
4) CPM $ –  $30
5) $/spot – $0.03
6) Spots/month – 167
7) The service hits the revenue target at 17-28 hours/viewer/month

Quote from Mike Cavanagh – CFO @ Comcast:
“We think we’ve got a pretty special opportunity, when you think about the relatively underserved segment of premium content [that is] ad-supported…Consumer demand is there, with all the pay-for SVOD services that are proliferating…Comcast research has found that 80% of consumers are interested in watching a premium VOD service that has a “reasonable amount of ads,”

Video: Sources: Peacock streaming service likely to be free for all

READ NEXT

Want the latest insights from around the video advertising industry?
Subscribe to our State of the Screens Newsletter.

logo

Thank you

We have received your message and will be in touch shortly.

logo

Contact Us