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State of the Screens

NBCU’s Peacock Takes Flight, But Can It Soar Without Amazon and Roku?

By July 16, 2020November 15th, 2021No Comments

Key details for Peacock:
Launching today
2) 20K hours of content on Peacock Premium (≈ 50% w/ free tier)
3) 600 movies + 400 TV series
4) 1K+ staff

Peacock is launching w/ three pricing tiers:
1) Free – 
Ad-supported w/ limited programming
2) Premium ($5) – Ad-supported w/ access to a larger content library
3) Premium Plus ($10) – Full access to programming + ad-free

Ad minutes per hour, according to NBCUniversal:
Linear TV – 16 – 20
Digital video – 8
Peacock – 5

Quick math on the advertising model for Peacock:
Ad minutes/hour – 5
30s spots/hour – 10
3) Ad revenue/user/month – ≈ $5.20 (see below)
3) CPM $ –  $30
4) $/spot – $0.03
5) Spots/month – 173
6) The service hits the revenue target at 17 hours/viewer/month

Quote from Linda Yaccarino – Chairman, Ad Sales and Partnerships @ NBCUniversal:
“We sell our inventory as one platform, so it’s linear TV and digital together.  The distinction between the two seems so yesterday.”

The dispute: Peacock will launch without Amazon or Roku due to a dispute around distribution terms, including the share of advertising that Amazon/Roku will be able to sell.  For example, Roku is reportedly asking for 30% of inventory, while Peacock is pushing for 15%.

Projected hours/user/month for ad revenue goal (% increase) for Peacock:
0% advertising split – 17
15% advertising split – 20 (↑ 18%)
3) 30% advertising split – 25 (↑ 25%)

Peacock financial estimates by 2024:
1) Accounts – 30M – 35M
2) Monthly revenue/user – $6 – $7
3) Total revenue –  $2.5B

More #1: Peacock, NBCUniversal’s New Streaming Service, Joins Crowded Field at Challenging Time

More #2: Peacock Launch Lineup: What’s on Free Streaming and Premium Tiers

More #3: NBCUniversal CEO Jeff Shell Has No Time for Hollywood Egos

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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