Peacock Reaches 28 Million Subscribers, Gets Closer to Goal of Peak Revenue Losses
Peacock Reaches 28 Million Subscribers, Gets Closer to Goal of Peak Revenue Losses
Subscriber additions and price increases are helping Comcast whittle away at Peacock’s losses, which will help Comcast point the streamer toward profitablilty next year.
NBCUniversal is in the zone. Its parent company Comcast reported its earnings this week, and as part of that report revealed that NBCU’s streaming platform Peacock gained another 4 million subscribers in the third quarter, bringing its overall total to 28 million. That doubles the amount of customers Peacock attracted in the second quarter, at the end of which it had 24 million users overall.
- Peacock has grown to 28 million paid users.
- The streamer is also narrowing its losses, and expects to start climbing toward profitability next year.
- This was the first quarter in which users had to subscribe to Peacock at the $5.99/$11.99 per month pricing schedule.
Peaks and Valleys
Comcast got more good news from Peacock than just a higher subscriber total. The streamer posted $830 million of revenue in the quarter, up considerably from $506 million in the third quarter of 2022. More importantly, Peacock’s Adjusted EBITDA loss fell from $614 million in Q3 of last year to $565 million in the same period this year.
That’s a corporate way of saying that Peacock is chipping away at its quarterly losses. Though they still range in the hundreds of millions of dollars, the company still expects to hit peak losses this year before beginning the path to profitability in 2024. Much like every other streaming platform in the industry, Peacock reevaluated its goals last year and determined that customer revenue, not huge subscriber additions was the true metric to chase.
What Were Peacock’s Biggest News Stories of the Quarter?
One of the best ways for Peacock to meaningfully increase customer revenues is to raise prices, which is exactly what the streamer did in July. This is the first full quarter in which users have had the chance to express their feelings about that price increase, and the numbers indicate they largely stuck by Peacock.
As price increases go, Peacock’s wasn’t exactly the most onerous. The service increased subscription costs for its ad-supported Premium tier by $1 per month, and on the ad-free Premium Plus plan by $2. While this suggests that Peacock has room to raise prices again in the near future without risking a substantial customer revolt, users probably don’t have to worry about another rate increase for at least a few months.
Peacock’s decision to license “Suits” to Netflix during the quarter has been quite the news generator in Q3. The show saw a surge in popularity once it became simultaneously available on Netflix and Peacock, and it’s been topping out streaming charts ever since.
JetBlue passengers got access to “Suits” and other Peacock content while in flight this quarter. In August, Peacock announced the commencement of a deal with the airline that will allow JetBlue TrueBlue loyalty members to stream a huge list of Peacock titles while in the air at no cost.
Airplanes are not the only public places that are due to receive more Peacock programming in the near future, either. The streamer struck a deal with EverPass Media for multiple years that will allow EverPass to distribute sporting events exclusive to Peacock — such as its two exclusive NFL games this year — in bars and restaurants.
The sky appears to be the limit for Peacock, as it continues to add subscribers and make meaningful gains toward its goal of peaking losses.
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.