Executives at NBCUniversal and Comcast took the stage at Studio 8H at Rockefeller Center on Thursday and offered their first financial projections for streaming service Peacock during an investor presentation.
Four years after it launches, first to some Comcast subscribers in April and then nationally by July, the service will be bringing in $2.5 billion in revenue and breaking even. There will be 30 million to 35 million “active users” by that point, the company said.
“We are creating the equivalent of a 21st century broadcast business, delivered on the internet,” NBCU chairman Steve Burke said.
While cord-cutting is a reality, counting on-demand and digital viewing, he continued, “More people are watching more video today than ever.”
While subscriptions ranging from $5 a month to $10 a month will be sold to non-Comcast subscribers, the company is counting on advertising revenue being a mainstay of the new service. Currently, NBCU generates $13 billion in ad revenue — sales chief Linda Yaccarino emphasized the company’s existing strength, saying it will provide brand safety and tech know-how.
Peacock “will define the future of advertising” by allowing more interactivity and immersion in brand messages, she said. That, in turn, will translate into more revenue, even though ads will be capped at 5 minutes per hour, less than NBCU’s average of 8 minutes in digital and 17-18 minutes across all of its linear networks.
Comcast CEO Brian Roberts closed the prepared remarks by saying the team working on Peacock has “spent the past year diligently trying to reimagine the NBCU platform.” He said they have identified “new avenues of growth … that were literally not technically possible” a decade ago, when Comcast took control of NBCU.