NBC’s potential Peacock cable channel is confusing distributors
NBC’s potential Peacock cable channel is confusing distributors
At least one major cable channel distributor is puzzled by NBCUniversal’s decision to launch a new linear sports network.
NBC is hedging its bets in a major way. The company is moving ahead with plans to launch a new cable sports channel, but this one would be a bit different than others on the market like ESPN and TNT. NBC’s newly proposed cable sports network would be stocked with sports content formerly exclusive to Peacock, the company’s streaming service. If that set-up is confusing to standard customers, it’s also got at least one major cable distributor searching for answers, according to a new report.
Key Details:
- What’s the point?: At least one cabler doesn’t understand the drive to launch a new Peacock sports channel.
- Add-on only: The new channel won’t be available in base packages, adding to the confusion.
- NBA blues?: The channel could be a response to the massive rights fee payments NBC will shell out for NBA games.
According to Sports Business Journal, at least one major multi-channel video programming distributor (MVPD) doesn’t understand the drive to launch a new cable sports channel featuring the events now shown on Peacock.
“We feel like maybe we’re missing something,” the source told SBJ. “Unless there’s some new content, which it doesn’t sound like there is, and it’s repurposed feedback and some other stuff, then I’m not getting it.”
The channel isn’t intended by NBC to fit into base cable channel plans, but will be made available in add-on packs, and potentially on an à la carte basis. That’s one big reason for the confusion; such add-ons usually cost at least $10 per month, and since a Peacock Premium subscription with all the live sports on the streamer costs $11 per month, there probably won’t be a compelling financial incentive for viewers to pivot to the new sports channel. The new Peacock sports channel also won’t have any of the on-demand entertainment that’s included with the streamer.
Doing so would give buyers the convenience of keeping the channel on a single monthly bill. But there’s one cable company for whom even that convenience factor wouldn’t mean much to subscribers: Spectrum TV. This service offers Peacock Premium free for its TV Select subscribers, and Spectrum has one of the largest pay-TV audiences in the United States. Why would its customers even think of adding a new Peacock sports channel?
From NBC’s perspective, the channel will allow it to open a new revenue stream at a time when it’s trying to pivot away from linear and toward streaming. That pivot is an expensive one, and NBC is also paying $2.5 billion per season for its NBA rights, which, for context, is less than CBS currently pays for its Sunday afternoon NFL package. The money brought in by a new Peacock sports channel could be key for the company.
What do you think of NBC’s plan to launch a new Peacock sports channel? Are you as confused as the cabler who spoke to SBJ about the matter, or are you interested in a new Peacock sports network in lieu of signing up for the streaming service? Let us know what you think in the comments!
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,” “The Office,” and original hits like “Poker Face” and “Bel-Air.” You can also watch live sports and NBC programming, including the NFL, MLB, WWE, the Olympics, the Premier League, NASCAR, the French Open, college football and basketball, and the PGA Tour. Premium Plus subscribers can stream their local NBC feed in all 210 markets.