Comcast is doubling the amount of spending for programming Peacock’s streaming this year to more than $ 3 billion as it seeks to support acquisitions, with plans to increase content spending to $5 billion in the coming years. Comcast’s CFO, Michael Cavanagh, said that some of the increase in spend would be “incremental” and some “will be a reallocation from linear programming”.
Comcast has changed its strategy for Peacock to focus on persuading subscribers to offer its mid-range ads, which include premium content, instead of the pure AVOD service and the SVOD ad-free version.
“While the timing of when Peacock breaks even may be pushed out from where we originally expected, we believe pursuing a dual revenue stream is the right strategy to create long-term value,” said Cavanagh.
NBCUniversal CEO, Jeff Shell, said that “Peacock is not a separate business” from Comcast’s overall TV offering but an “extension” of it, based on the same “dual revenue stream” of subscription and advertising. Cavanagh said Comcast’s international strategy for Peacock would focus on service provider partnerships, including the launch of Sky, with Italy, the United Kingdom and Germany. In addition to the key areas, which he said account for almost 70% of the addressable market. Cavanagh also added the focus will be on “partnerships and on a bespoke country-by-country basis of expanding internationally”.
Peacock monthly active accounts in the US reached 24.5 million at year-end.
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