As more competitors enter the ad-supported streaming space, including Netflix and Disney, Peacock executives believe the platform remains ahead.
“We know we have competition, but we’re moving forward with a really good team,” said Jason Armstrong, executive vice president, vice chief financial officer and treasurer of Comcast Corporation, owner of NBCUniversal.
Speaking at the 2022 Bank of America Securities Media, Communications and Entertainment Conference, Armstrong cited NBCUniversal’s $7 billion in a recent preview, of which $1 billion went to Peacock, as evidence.
He also referred to the company’s famous consideration as a Netflix ad partner, citing it as a sign of Comcast’s strength in ad technology, saying the company is “near the top” of Netflix’s list, but “maybe I I didn’t want to write it. “The best guarantee there is.”
That view comes even after Peacock saw its subscriber base plateau in the second quarter. After ending the first quarter with more than 13 million paid subscribers and 28 million monthly active US accounts, the company said in late July that paid subscribers “remained relatively steady at 13 million” after a “very strong” at the end of June. A first quarter fueled by a variety of extraordinary programming, including the Super Bowl and the Beijing Winter Olympics, generated a gain of 4 million paid subscribers.
On Thursday, Armstrong called the second and third quarters “retention quarters” for the streaming service, whose growth is expected to pick up again in the fourth quarter thanks to the return of more content, including NFL football in the US. Awarded League. .
Asked if the company would consider licensing its content to a third party, Armstrong said that NBCUniversal would prioritize Peacock and then linear, but that “the third party will play a role.”
“The demand for content has never been greater,” Armstrong added.
Overall, Armstrong said NBCUniversal sees Peacock as an “extension” of the company’s overall business and a way to compensate for its declining linear audience.
“The goal is for you to come out on the other side and be a growing business and complement the video portfolio,” he said.
Comcast recently reported that earnings from its broadband customers stagnated in the second quarter amid growth challenges in the cable industry, despite most analysts expecting lower earnings from Comcast. The company’s total broadband customer base was 32.2 million compared to the first quarter of 2022; For the prior year period, it said the total network of broadband customers was 354,000. On its earnings call, Comcast said weak trends in broadband customers continued through late July into early third quarter, with a quarterly loss of about 30,000, but added that July is typically a weak month. School activity begins.
Comcast also recently reiterated earlier guidance that Peacock’s earnings before interest, taxes, depreciation and amortization (EBITDA) would be about $2.5 billion in 2022, with losses larger in the second half, particularly in the fourth quarter. .
Bloomberg recently reported that NBCUniversal CEO Jeff Shell was looking to cut $1 billion from its broadcast and cable TV budgets, which could be invested in Peacock, theme parks or other growing businesses.
As merger and acquisition speculation swirls around the entertainment industry, Comcast Chairman and CEO Brian Roberts reiterated in late July that the bar for acquisitions was “too high” for his team. Asked on a second-quarter earnings call how he felt about the conglomerate’s assets, he said, “We’re in a fabulous place,” adding, “We have unprecedented cash flow and scale” with the company, whose many businesses operate. “Very well together.” As for possible acquisitions, “our bar is therefore very high,” he concluded. “I am very happy with the company.”
Armstrong defended that view on Thursday, saying the company’s investment priorities remain primarily domestic, with planned spending on the company’s broadband network, commercial services, parks business and its streaming platform.
Source: Hollywood Reporter
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