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State of the Screens

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

By December 19, 2019No Comments

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

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

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