Peacock: 9 million paying subscribers, 2022 spending will hit $3 billion

NBC Universal outlines the current state of its Peacock streaming service and discusses future plans.

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Comcast’s latest fourth-quarter earnings report outlines strong revenue and a confident roadmap for its content services, including Peacock. NBC Universal’s streaming service Peacock currently has 9 million paid subscribers since its launch in 2020, which is extremely low compared to Netflix (221.8 million) and Disney+ (118 million).

However, Peacock does not follow the rules of Netflix or Disney. The service offers three options: a free tier with ads, a $4.99 paid tier with reduced ads, and a $9.99 premium tier with no ads. Peacock Premium offers exclusive access to hit shows such as The Office, while the free tier is limited. Comcast strongly believes in this premium-free combo.

Peacock: 9 Million Paying Subscribers, 2022 Spending Will Hit $3 Billion 533 |  TweakTown.com

Comcast also continues to spend big on Peacock, shelling out a content budget of $1.2 billion in 2021. Spending will double to over $3 billion in 2022. Peacock is not yet profitable and has lost 1, $7 billion last year, most of which came from the huge spending allowance.

Comcast CEO Brian Roberts discusses Peacock during the fourth quarter earnings call:

“When we introduced you to Peacock in early 2020, our vision was to launch a streaming service that offers premium content and is primarily ad-supported. What we’ve learned so far is that we have started with the right business model. With over 300 million hours of content consumed on Peacock per month, engagement with our platform has proven extremely valuable to advertisers.

“We still have 7 million highly engaged bundled subscribers from Xfinity and other major distributors who use Peacock monthly and currently receive Peacock Premium at no additional cost. We expect a strong conversion from this group into paying subscribers over time. “

Comcast CFO Michael Cavanaugh says Peacock made $800 million in 2021 and discusses plans for 2022 and beyond:

“In 2021, Peacock generated nearly $800 million in revenue and $1.7 billion in EBITDA loss, which includes content spend of over $1.5 billion. Even with a relatively limited programming slate, we have achieved a level of success in MAAs, paid subscriptions and engagement. This is driving our decision to double our content spend on Peacock in 2022 to over $3 billion with the goal of increase domestic content spending to $5 billion over the next two years, some of which will be incremental and some of which will be a reallocation of linear programming.”