Last week Comcast announced details on their new streaming service Peacock. During that event Comcast announced that they are not making money on on-demand and free streaming services like they should. They are launching Peacock so they can make money off of their content like they should with on-demand and free streaming.
The digital ad market in 2020 will be over $1 billion and Comcast wants to get more of these ad dollars by launching Peacock primarily as an ad-supported streaming service.
“This is a very exciting time for our company, as we chart the future of entertainment,” said Steve Burke, chairman of NBCUniversal. “We have one of the most enviable collections of media brands and the strongest ad sales track record in the business. Capitalizing on these key strengths, we are taking a unique approach to streaming that brings value to customers, advertisers and shareholders.”
“Peacock will provide consumers with a destination that goes beyond movies and television, aggregating a variety of content that fans want on one service,” said Matt Strauss, chairman of Peacock and NBCUniversal Digital Enterprises. “By delivering timely and topical content like breaking news, live sports, and watercooler moments from late night, Peacock is uniquely bringing a pulse to the world of streaming that does not exist in today’s marketplace.”
The question now is will Comcast be successful with their limited ad-supported version of Peacock in capturing a bigger part of the ad spending than partnering with other on-demand and free streaming services.
For now, Comcast seems to feel that they can do better by going on their own than to continue to work with services like Hulu who they still own part of and other streaming services. We will have to wait and see.
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