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
 Comcast has 6M+ broadband-only customers

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

Quick math on the advertising model for Peacock:
Ad minutes/hour – 3-5
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


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