Peacock paid subscribers flat at 13 million, losses widen to $467 million – TechCrunch

Comcast’s NBCUniversal streaming service Peacock ended the second quarter with 13 million paying subscribers, parent company Comcast said. reports this morning In first quarter, out of 28 million monthly active accounts, there were 13 million paying customers. This means that Peacock’s paid subscriber base has stalled at zero growth as of the end of June.

 

Also, Comcast revealed Peacock’s losses widened to $467 million (EBITDA) from an adjusted EBITDA loss of $363 million in 2021. Investors reacted negatively, and Comcast shares fell 6 percent in premarket trading.

Although there were losses and its subscriber base stagnated, Peacock did help deliver 8% year-over-year growth in distribution revenue.

The company was quick to remind shareholders that the streaming service, which also has a free advertising tier, had a “very strong first quarter driven by a variety of extraordinary programming,” Comcast said. wrote in a letter to shareholders.

Back in April, during the company’s first-quarter earnings call, Comcast Chairman and CEO Brian Roberts warned that the company did not expect significant levels of quarter-over-quarter growth. The addition of 4 million paid subscribers in Q1 2022 was largely due to Super Bowl LVI and the Beijing Winter Olympics being broadcast on the service.

Sports makes easy money by offering live coverage for the service, such as Sunday Night Football, the French Open tennis tournament, the Premier League and more. It is also the streaming home of the WWE Network. All its sports coverage is offered to Peacock Premium subscribers.

However, Peacock understands that most of its customers opt for the ad-supported plan.

John Jelly, Peacock’s SVP of Product and UX, announced during this year’s NewFront presentation that the broadcaster will have new advertising formats strengthen commercial opportunities with its marketing partners. This includes In-Scene Ads, which blend the product with content during post-production, and ‘frame ads’, where the brand will get a frame around the content that the customer wants to view.

During today’s earnings call, the company said: “At Peacock, we had the benefits of being in the market we entered, and we think we picked the right business strategy, which is kind of an expansion rather than a new business that would be. based on dual revenue streams, subscription advertising, and I think everyone has been in the direction of validating that business model.

While Peacock is a streaming service, Comcast likes to think it’s more than that. The company differentiates itself by focusing on a connected television (CTV) strategy.

Advertising is another big focus. “In terms of advertising overall, linear and Peacock, we’re one of the largest advertisers out there with over $10 billion in advertising,” Comcast added.

But the streaming service hasn’t given up on persuading its non-paying subscribers to switch to the Premium plan, which costs $4.99 or $9.99 a month. A few months ago Peacock confirmed a summer test which rewards paid subscribers with $15 movie tickets on Fandango or $7 Vudu rentals once a month.

While it’s unknown whether the added benefits will encourage subscriptions, we hypothesized that customers on the basic free plan are unlikely to be willing to pay ad-free levels for just one free movie each month. A spokesperson for NBCUniversal told TechCrunch that the feedback has been positive.

Peacock continues to focus on improving its customer experience with a new user interface and menu options. It also features a new ‘Catch Up with Key Plays’ feature which allows English Premier League fans to watch highlights without leaving the in-game viewing experience.

Peacock hopes the new content on the service will also help drive subscriber growth.

In today’s letter to shareholders, Roberts said: “We look forward to our latest premieres and planned content and live events from our media and studios, including Jurassic World. Dominion, Minions. The Rise of Gru, Nope, Sunday Night Football and the World Cup to make a significant contribution later this year, including growing our subscriber base at Peacock.”

According to the company, “Bel-Air,” a reboot of “Fresh Prince of Bel-Air,” was; most successful original show in the streaming service’s two-year history, despite a 71% audience share Rotten tomatoes. It also became a home Bravo shows like The Real Housewives of Atlanta and Top Chef.

While NBC and Peacock will broadcast this year’s Emmys, the fledgling service has only received three nominations For Glow in the Dark Queen of Universe and The Tease. NBC received a total of 28 Emmy nominations. By comparison, HBO/HBO Max had 140 nominations, Netflix 105 and Hulu 58.

Its latest comedy-thriller series »The resort“Hit the platform today, but already doesn’t have the best reviews. Starring William Jackson of The Good Place and Christine Milioti of Palm Springs, the mysterious love story was labeled as “weak” and confusing. The Hollywood Reporter and: CBR: called it “unsatisfactory”. These are obviously not the kind of reviews that will convince new subscribers to go watch the show, but since they’re just opinions, it’s probably best to watch it yourself.

Yesterday, Peacock handed a straight-to-series order to “Those Who Die,” a gladiatorial drama directed by “Moonfall” and “Independence Day” director Roland Emmerich and inspired by the non-fiction book by Daniel Mannix. The production budget was reported to be around $140 million, per deadline.

In May, Peacock announced a deal with Lionsgate, exploring original films. Separately, the broadcaster announced three original movies set to premiere in 2023, including “Shooting Stars,” based on LeBron’s past as a high school basketball player; “Praise This” and “The Killer.”

 



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