Peacock's dual-revenue model must be given room to succeed

New Ideas in MarketingEssential news for marketers, summarised by YouGov
November 01, 2021, 3:12 AM UTC

While Comcast has the option to sell its Hulu stake to Disney for at least $5.8 billion by 2024, it has promised to continue supplying NBCU programming to Hulu.

In 2019, when Disney bought Fox, it also bought a majority stake in Hulu, leaving Comcast with a minority third stake in the company. A deal between Comcast and Disney, however, allowed Disney to manage Hulu.

Comcast/NBCU is attempting to catapult Peacock’s success, as well as protect its Hulu investment. Peacock is a direct-to-consumer service with all the NBC TV shows, aiming to replicate Hulu's dual revenue model of ads and subscriptions. Peacock’s ad-free supported tier reported 50 million registered users and 20 million monthly active users in Q2 2020. 

15% of US adults reported watching content for free with ads on Peacock, as per Magid. But the platforms paid subscribers were much lower, with free users being 10-times higher than paying subscribers. The deal with Disney, according to Comcast's CFO, Mike Cavanagh, is a "great business", since it provides an additional 43 million users who pay to watch NBC content without ads.

Discover the top organisations in your market and industry that have customers buzzing using YouGov BrandRankings.

Read the original article

[3 minute read]