Streaming Woes: NBCUniversal Sees Decline in Revenues as Peacock Gains 28 Million Subscriberswordpress,streaming,NBCUniversal,revenues,Peacock,subscribers
Streaming Woes: NBCUniversal Sees Decline in Revenues as Peacock Gains 28 Million Subscribers

Streaming Woes: NBCUniversal Sees Decline in Revenues as Peacock Gains 28 Million Subscribers

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NBCUniversal‘s Peacock Reaches 28 Million Subscribers, Narrows Losses

In the latest quarter, NBCUniversal‘s flagship streaming service, Peacock, gained an additional 4 million subscribers, bringing its total subscriber count to 28 million. This growth was accompanied by a narrowed loss of $565 million, compared to the $614 million loss in the same period last year. The parent company, Comcast, had initially projected “peak losses” of around $3 billion for Peacock this year, but has now revised the loss outlook to $2.8 billion. Additionally, Peacock reported $840 million in revenues, a significant increase of 64 percent from the previous year.

Peacock‘s Role in the Transition to Streaming

Comcast Corp. president, Mike Cavanagh, emphasized that Peacock is a crucial part of the company’s transition from traditional linear TV networks to the streaming space. He expressed satisfaction with the progress made since the strategic pivot in their streaming strategy and predicted an improved financial performance for Peacock in the coming years.

Overall Performance of Comcast

Comcast’s content and experiences division, which includes NBCUniversal‘s TV and streaming business, international networks, Sky Sports channels, film studios, and theme parks, saw a modest increase of just under 1 percent in revenues, reaching $10.5 billion. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to $1.97 billion. However, the studio division of NBCUniversal faced challenges, with a 22 percent decline in EBITDA to $429 million and a 23.6 percent decrease in revenue to $2.5 billion. This decline was attributed to lower content licensing and theatrical revenue.

Impact on the Film Industry

The film studios’ revenue was affected by a 25 percent decrease in theatrical revenue, totaling $504 million. However, Christopher Nolan’s film Oppenheimer recorded significant success at the box office, generating over $900 million worldwide. Despite the studio’s challenges, Comcast remains optimistic about its long-term strategy and the potential for increased streaming of live sports events, including the 2024 Paris Olympics, on Peacock.

Cord-Cutting and Broadband Subscriber Losses

Comcast experienced a decline of 490,000 subscribers in its legacy cable TV business, attributed to the ongoing trend of cord-cutting and viewers’ shift towards streaming platforms. On the other hand, the company gained 294,000 wireless subscribers but lost 18,000 residential broadband subscribers. These losses in broadband customers and domestic advertising revenue resulted in a 6.6 percent decrease in Comcast’s stock value.

The Impact of Production Shutdown

Comcast’s CFO, Jason Armstrong, disclosed that the company had saved approximately $500 million in working capital during the current production shutdown in Hollywood due to the actors and writers strikes. However, he anticipates that this benefit will reverse as production ramps up to normal levels in the coming quarters.

Comcast’s Response to Carriage Agreements

Comcast CEO, Brian Roberts, declined to comment on media speculation regarding pro sport leagues investing in Disney’s ESPN service. However, he reiterated Comcast’s commitment to streaming live sports, stating that sports are at the heart and soul of their strategy. Roberts also highlighted the importance of providing customers with a great network, aggregating content, and having access to that content, positioning Comcast well in the evolving TV landscape.

Overall, the latest earnings report highlights the progress and challenges faced by NBCUniversal‘s streaming service, Peacock. While the subscriber growth is impressive, the service is still operating at a significant loss. The success of Peacock, as well as Comcast’s broader streaming strategy, will largely depend on their ability to attract and retain viewers through engaging content and capitalizing on the increasing trend of streaming live sports events.


Streaming Woes: NBCUniversal Sees Decline in Revenues as Peacock Gains 28 Million Subscribers
<< photo by Ivan Samkov >>
The image is for illustrative purposes only and does not depict the actual situation.

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