Household budgets are tightening everywhere at the moment. That holds true for enormous corporations as well, as media companies are feeling the pinch of inflation keenly. Comcast is one such company. According to a report from Bloomberg, Comcast is looking to make $1 billion in cuts to the budgets of the TV networks in its entertainment division, NBCUniversal.
Comcast is currently compiling its budget for next year, and NBCU CEO Jeff Shell has been making the rounds, encouraging the production of lower-cost shows and turning over couch cushions to scrape together every possible penny. There have even been discussions of eliminating an hour of primetime broadcasting on NBC. One tactic not currently under consideration to generate more savings is cutting the budget of NBC’s streaming platform Peacock.
At first, it would seem that cuts to Peacock would make sense. After all, Netflix has decided to keep its content spending flat in 2022, as it sorts through its venture into ad-supported streaming. HBO Max has seen a huge amount of content leave the platform as Warner Bros. Discovery hacks and slashes its way to $3 billion in budget savings. Peacock itself lost $500 million in the most recent quarter, and its paid subscriber base remained flat at 13 million.
But Comcast and NBCU are committed to Peacock, and in fact are looking to increase its budget. The streamer's content spend in 2022 doubled to $3 billion from $1.5 billion in 2021, and that number will rise to $5 billion in the next few years.
Streaming is still one of the fastest-growing segments at Comcast, and the company is looking for as many ways to expand Peacock as it can. It is currently seeking avenues to add more popular linear shows to the platform, as well as continuing to develop new shows exclusively for Peacock, even though the service has yet to have a breakout hit. Comcast also sees Peacock as more than just a streaming platform, but an integral part of its connected TV strategy.
There are some numbers that suggest Comcast has been at least partially successful with Peacock. It currently boasts the most ad-supported subscribers of any streaming service, which means demand for its content is high. That library of content is only growing, as many NBC shows are preparing to move from Hulu to Peacock this fall.
What does all this mean for the future of NBC? It could suggest that Comcast is looking to shift focus toward streaming in a more dramatic way. The proposed cutting of an hour of primetime could just be the beginning. The conglomerate may even consider such drastic steps as stealing shows like “Saturday Night Live” from their linear networks and making them available via streaming only. Comcast is certainly going its own way with Peacock, and it will bear watching to see if its strategy will be ultimately successful.
Peacock
Peacock is a subscription video streaming service from NBCUniversal that includes original shows, blockbuster movies, and classic television series. Peacock is home to “Yellowstone,” and “The Office,” as well as original hits like “Poker Face” and “Bel-Air.” You can also watch live sports including NFL, MLB, WWE, Olympics, Premier League, NASCAR, French Open, College Football and Basketball, and PGA Tour. Premium Plus subscribers can stream their local NBC feed in all 210 markets.