This week Comcast/NBCU revealed all the details about its Peacock service. We discuss the economics of the service and wonder if the company would have been better off buying Hulu.
Chapter 1: Just the facts (1:50)
In the presentation to analysts, Comcast/NBCU revealed pricing, content strategy, release schedule, monetization plan, and platform strategy for its impending Peacock service. I run down the facts about the service.
Chapter 2: Do the economics of Peacock work (6:00)
With a lighter ad load than Hulu, lower ARPU than Hulu, and a ramp to 30-35 million active users by 2024, the economics of Peacock look very constrained. Will runs down some of the numbers for the service, and they don’t look good.
Chapter 3: Peacock profitable in 2024 (12:50)
Executives at NBCU are forecasting that Peacock will be profitable in 2024. However, it won’t be doing as well as Hulu is today if they reach their goals.
Chapter 4: Peacock content and release plan (16:00)
Peacock will debut first on Xfinity and Cox pay TV systems in April and in July to everyone in the U.S. The timing of the July release is very deliberate. The Tokyo Olympics, which start in July, is a central part of NBCU’s strategy to get the service off to a fast start.
Chapter 5: The experience looks top-notch (20:00)
NBCU gave a peek at the Peacock experience during the presentation. It looked terrific, especially as when the app launches video will automatically start playing. There was no mention of a download feature during the presentation. If the app lacked the feature, it would be a big hole the company would need to plug quickly.