Peacock’s launch during this unusual period did not involve a sudden scramble for advertisers since it had ten long-term deals in place with major sponsors that have not dropped out or pulled back as others have across the television landscape.
Matt Strauss, chairman of Peacock and NBC Universal Digital Enterprises, on a call Tuesday presenting the new streaming service, said it’s on track with its pre-corona advertising forecasts – no small feat given the plunge in ad sales across media despite the surge in television viewing. That’s thanks to 18-month deals with partners including Capital One, L’Oreal, Molson Coors, Subaru and Verizon – unveiled yesterday. Previously announced sponsors include Apartments.com, State Farm, Target, and Unilever.
That’s long enough to keep the new streaming service on track with its pre-corona advertising forecasts – no small feat given the plunge in ad sales across media despite the surge in television viewing.
There’s “no change in financial guidance or targets. We feel really good about our strategy and ability to develop long term,” Strauss told reporters.
He said these advertisers have “longer-term opportunities to be part of the service. We put it in place intentionally to give them time to work with us and our product and innovations. There’s a huge increase in TV viewing and streaming and we believe there is this void of premium ad-supported content in the streaming market and we are seeing advertisers … wanting to work with us. We are fortunate. We created a platform” for them.
Peacock will continue to add new partners, he said. But its maximum of only five minutes of commercial load per hour on average, inventory is limited. He said the service won’t exceed that load even if it inks more deals. NBCU’s commercial average is 8 minutes an hour in digital and 17-18 minutes across its linear networks.
“We are very optimistic and encouraged with what we are seeing with advertisers that got in to work with us. We do not see any degradation to the targets we laid out with our advertising sponsors. They are longer-term relationships. Not just about Peacock in April or July but a longer term view.”
“The plan was to get to ten and we got to ten,” he said.
Peacock launches for nationally for Comcast subscribers Wednesday and for everyone else on July 15.
At an investor day in January, Comcast executives said they expect the service will be bringing in $2.5 billion in revenue and breaking even four years from launch. There will be 30 million to 35 million active users by that point, the company said. It is counting on advertising to be the mainstay of the service, although it will be available by subscription to non-Comcast customers for $5 or $10 dollars a month.
Ad sales chief Linda Yaccarino said then that Peacock “will define the future of advertising” by allowing more interactivity and immersion in brand messages.
New options for brands pioneered for Peacock include Trending, Solo, Curator, Explore and On-Command ads. They will join previously available features like Shoppable TV and Prime Pods. NBCUniversal said Peacock also reps the next phase of its ‘One Platform’ offering that lets marketers reach audiences across the NBCUniversal ecosystem as broadly or narrowly as they want.