Why Peacock's Bet on Ad-Supported Streaming Could Be Genius Move

INTEL. ANALYSIS. ACCESS. COMMUNITY.

The Essential Source for Entertainment Insiders

‘Brockmire': How a YouTube Skit Became a 4-Season Cable Comedy

Peacock

Why Peacock’s Bet on Ad-Supported Streaming Could Be Genius Move

by Sean Burch and Trey Williams | January 17, 2020 @ 12:30 PM

”Peacock smartly looks to both stay competitive with quality content and to prevent breaching consumer price thresholds,“ analyst Sarah Henschel says

NBCUniversal’s new Peacock streaming service is still months away from its attempt to win over viewers in an increasingly saturated streaming market, but it’s already made a strong first impression with Wall Street analysts.

Peacock, which NBCU execs like chairman Steve Burke unveiled Thursday at its 30 Rockefeller Plaza headquarters in New York, will launch on April 15 for Comcast Xfinity X1 and Flex subscribers, before rolling out nationwide on July 15 — about a week before the 2020 Tokyo Olympics kick off.

Become a member to read more.

NBCUniversal unveiled a deluge of shows and films — both original and classic — that will be available on the platform at launch, and in the year to come. Old titles such as “The Office,” “Parks and Recreation” and “Battlestar Galactica,” as well as new revivals like the “Saved by the Bell” and “Punky Brewster” were already known.

What has analysts especially intrigued, though, is Peacock’s multi-pronged pricing structure. A free option, aptly dubbed Peacock Free, will include access to select Peacock original shows, NBC library content, and next-day access to current shows on NBC. (It’s unclear if shows from NBCU’s cable networks like Bravo, USA and Syfy will also be included in the free tier.) Peacock Premium, on the other hand, will cost either $4.99 per month for ad-supported streaming or $9.99 for ad-free viewing of all Peacock original content; it’ll also include early access to shows like the “Tonight Show” and more sports.

Also Read: NBCUniversal's Peacock Wants to Make Advertisers Part of the Streaming Era

Wedbush Analyst Dan Ives called NBCU parent company Comcast’s decision to set itself apart and lean into ad-supported streaming a “smart” move.

“A key differentiator in our opinion for Peacock is its monetization approach,” Ives said in a note to clients. “Comcast plans to make its money from revenue earned from the commercials streaming with its programs unlike the traditional subscription fee approach. To this point, Peacock will limit the amount (and) time of ads to 5 minutes per viewing hour with the hopes of this feature helping to lure consumers away from competitors and on to its platform.”

Ad-supported streaming, to this point, hasn’t been a sexy choice. Netflix, which now has more than 158 million subscribers, ran to the front of the streaming pack as an ad-free service; it’s also adamantly pushed back against suggestions it might explore advertising on its home screen or introduce an ad-supported subscriber tier. Amazon Prime Video and HBO Now have skirted ads, too, while Hulu has offered both an ad-supported and ad-free options. (Hulu earns more from its ad-supported subscribers than its ad-free subscribers, a person with knowledge of the company’s business model told TheWrap.)

When it comes to premium streaming services, the tacit agreement between companies and their subscribers has typically been you give us quality shows, and we’ll pay to skip any ads.

Also Read: Here's Everything Coming to Peacock, NBCUniversal's Upcoming Streaming Service

But that agreement may be harder to keep as more streaming services hit the market and consumers balk at paying for yet another service. Disney+ and Apple TV+ recently launched as subscription video-on-demand (SVOD) services, and upcoming services from both WarnerMedia and Quibi will add two more formidable choices for viewers to pick from. How many streaming services can people realistically expect to pay for? There was already a slight dip last year in how many streaming services U.S. households paid for last year. By offering both a cheap and free ad-supported subscription, NBCU positions itself well to attract budget-minded viewers, IHS Markit analyst Sarah Henschel told TheWrap.

“NBCUniversal is increasingly aware of the influx of new direct to consumer SVOD services entering the market. Their positioning of Peacock smartly looks to both stay competitive with quality content and to prevent breaching consumer price thresholds,” Henschel said.

“By pursuing an AVOD business model, NBCU is able to differentiate their service by offering a free option to consumers, and buy themselves time to build up an originals slate,” Henschel continued. “The AVOD model business model puts less pressure on a service hitting subscriber numbers solely to measure if it is successful. NBCU’s past ownership experience with Hulu also gives them advantages in understanding the ins and outs of operating an ad-supported online video business.”

To this point, AVOD services have largely been complimentary to subscription services because of their underwhelming content. By offering some of its top shows to free customers, though, Peacock could break the mold, according to Parks Associates analyst Brandon Riney.

Also Read: Kevin Hart's Laugh Out Loud Network Inks Partnership Deal with NBCU's Peacock Streaming Service

“Peacock may disrupt this standard with its free tier that could include content that is more current and more premium, although it has roughly half the amount of content that its premium, paid tiers offer,” Riney said, noting that no free, ad-based streaming service has a market share greater than 7% of U.S. broadband households. “So there is an opportunity for Peacock to quickly become a leader in this space,” he added.

Comcast and NBCU are betting Peacock will attract up to 35 million subscribers by the end of 2025. That projection, according to several analysts, appears light, when looking at the built-in advantages Peacock will enjoy.

“The overall outlook and estimate, I would say, was overly conservative when you consider it will be available to Comcast and Cox customers right off the bat, with the ability to upgrade,” CFRA analyst Tuna Amobi told TheWrap. “Peacock has much better than a long shot at being one of the premiere, commercially viable streaming services out there… The main question is how are they going to continue to build and refresh the content.”

Winter TV 2020: Premiere Dates for New and Returning Shows (Photos)

Winter is well underway and with it, naturally, comes the Winter TV season. In honor of the colder months and their small-screen offerings, TheWrap has rounded up the premiere dates for not just the new and returning shows on Fox, ABC, NBC, CBS and The CW, but also the ones for the eagerly anticipated series hitting cable channels and streaming services this winter. Click through our gallery to find out when your favorite winter shows will be back and when your possible new favorites will debut.

Also Read: Why Netflix Is Betting You’ll Want ‘The Witcher’ Season 2 – Before You’ve Seen Season 1
ABC/AMC/NBC/Netflix
Series: "Dracula" Net: Netflix Premiere Date: Saturday, Jan. 4 Time: N/A
Netflix
Series: "Say Yes to the Dress: America" Net: TLC Premiere Date: Saturday, Jan. 4 Time: 8 p.m.
TLC
Series: "Sister Wives" Net: TLC Premiere Date: Sunday, Jan. 5 Time: 8 p.m.
TLC
Series: "Naked and Afraid: Alone" Net: Discovery Channel Premiere Date: Sunday, Jan. 5 Time: 10 p.m.
Discovery Channel
Series: "America's Got Talent: The Champions" Net: NBC Premiere Date: Monday, Jan. 6 Time: 8 p.m.
NBC
Series: "The Bachelor" Net: ABC Premiere Date: Monday, Jan. 6 Time: 8 p.m.
ABC
Series: "Love & Hip Hop: Miami" Net: VH1 Premiere Date: Monday, Jan. 6 Time: 9 p.m.
VH1
Series: "Manifest" Net: NBC Premiere Date: Monday, Jan. 6 Time: 10 p.m.
NBC
Series: "Ellen's Game of Games" Net: NBC Premiere Date: Tuesday, Jan. 7 Time: 8 p.m.
NBC
Series: "Jeopardy: The Greatest of All Time" Net: ABC Premiere Date: Tuesday, Jan. 7 Time: 8 p.m.
ABC
Series: "Nick Cannon Presents: Wild N' Out" Net: VH1 Premiere Date: Tuesday, Jan. 7 Time: 8 p.m.
VH1
Series: "Gordon Ramsay's 24 Hours to Hell and Back" Net: Fox Premiere Date: Tuesday, Jan. 7 Time: 9 p.m.
Fox
Series: "The Haves and the Have Nots" Net: OWN Premiere Date: Tuesday, Jan. 7 Time: 9 p.m.
OWN
Series: "Schitt's Creek" Net: Pop TV Premiere Date: Tuesday, Jan. 7 Time: 9 p.m.
Pop TV
Series: "Vanderpump Rules" Net: Bravo Premiere Date: Tuesday, Jan. 7 Time: 9 p.m.
Bravo
Series: "FBI: Most Wanted" Net: CBS Premiere Date: Tuesday, Jan. 7 Time: 10 p.m.
CBS
Series: "Zoey's Extraordinary Playlist" Net: NBC Premiere Date: Tuesday, Jan. 7 Time: 10 p.m.
NBC
Series: "Cheer" Net: Netflix Premiere Date: Wednesday, Jan. 8 Time: N/A
Netflix
Series: "Undercover Boss" Net: CBS Premiere Date: Wednesday, Jan. 8 Time: 8 p.m.
CBS
Series: "Catfish: The TV Show" Net: MTV Premiere Date: Wednesday, Jan. 8 Time: 8 p.m.
MTV
Series: "Criminal Minds" Net: CBS Premiere Date: Wednesday, Jan. 8 Time: 9 p.m.
CBS
Series: "America's Top Dog" Net: A&E Premiere Date: Wednesday, Jan. 8 Time: 9 p.m.
A&E
Series: "Party of Five" Net: Freeform Premiere Date: Wednesday, Jan. 8 Time: 9 p.m.
Freeform
Series: "Medical Police" Net: Netflix Premiere Date: Friday, Jan. 10 Time: N/A
Netflix
Series: "AJ & The Queen" Net: Netflix Premiere Date: Friday, Jan. 10 Time: N/A
Netflix
Series: "Lincoln Rhyme: Hunt for the Bone Collector" Net: NBC Premiere Date: Friday, Jan. 10 Time: 8 p.m.
NBC
Series: "The Outsider" Net: HBO Premiere Date: Sunday, Jan. 12 Time: 9 p.m.
HBO
Series: "The New Pope" Net: HBO Premiere Date: Monday, Jan. 13 Time: 9 p.m.
HBO
Series: "Grace & Frankie" Net: Netflix Premiere Date: Wednesday, Jan. 15 Time: N/A
Netflix
Series: "The Magicians" Net: Syfy Premiere Date: Wednesday, Jan. 15 Time: 10 p.m.
Syfy
Series: "68 Whiskey" Net: Paramount Network Premiere Date: Wednesday, Jan. 15 Time: 10 p.m.
Paramount Network
Series: "Listing Impossible" Net: CNBC Premiere Date: Wednesday, Jan. 15 Time: 10 p.m.
CNBC
Series: "Killer Inside: The Mind of Aaron Hernandez" Net: Netflix Premiere Date: Wednesday, Jan. 15 Time: N/A
Netflix
Series: "Grown-ish" Net: Freeform Premiere Date: Thursday, Jan. 16 Time: 8 p.m.
Freeform
Series: "Everything's Gonna Be Okay" Net: Freeform Premiere Date: Thursday, Jan. 16 Time: 8:30 p.m.
Freeform
Series: "Little America" Net: Apple TV+ Premiere Date: Friday, Jan. 17 Time: N/A
Apple TV+
Series: "Diary of a Future President" Net: Disney+ Premiere Date: Friday, Jan. 17 Time: N/A
Disney+
Series: "Sex Education" Net: Netflix Premiere Date: Friday, Jan. 17 Time: N/A
Netflix
Series: "Seven Worlds, One Planet" Net: BBC America Premiere Date: Saturday, Jan. 18 Time: 9 p.m.
BBC America
Series: "Avenue 5" Net: HBO Premiere Date: Sunday, Jan. 19 Time: 10 p.m.
HBO
Series: "9-1-1: Lone Star" Net: Fox Premiere Date: Sunday, Jan. 19 Time: 10 p.m.
Fox
Series: "Curb Your Enthusiasm" Net: HBO Premiere Date: Sunday, Jan. 19 Time: 10:30 p.m.
HBO
Series: "Brain Games" Net: Nat Geo Premiere Date: Monday, Jan. 20 Time: 9 p.m.
Nat Geo
Series: "Home Town" Net: HGTV Premiere Date: Monday, Jan. 20 Time: 9 p.m.
HGTV
Series: "DC's Legends of Tomorrow" Net: The CW Premiere Date: Tuesday, Jan. 21 Time: 9 p.m.
The CW
Series: "Project Blue Book" Net: History Channel Premiere Date: Tuesday, Jan. 21 Time: 10 p.m.
History
Series: "Awkwafina Is Nora From Queens" Net: Comedy Central Premiere Date: Wednesday, Jan. 22 Time: 10:30 p.m.
Comedy Central
Series: "Star Trek: Picard" Net: CBS All Access Premiere Date: Thursday, Jan. 23 Time: N/A
CBS All Access
Series: "Station 19" Net: ABC Premiere Date: Thursday, Jan. 23 Time: 8 p.m.
ABC
Series: "Outmatched" Net: Fox Premiere Date: Thursday, Jan. 23 Time: 8:30 p.m.
Fox
Series: "The Bold Type" Net: Freeform Premiere Date: Thursday, Jan. 23 Time: 9 p.m.
Freeform
Series: "Chilling Adventures of Sabrina" Net: Netflix Premiere Date: Friday, Jan. 24 Time: N/A
Netflix
Series: "The Ranch" Net: Netflix Premiere Date: Friday, Jan. 24 Time: N/A
Netflix
Series: "Shrill" Net: Hulu Premiere Date: Friday, Jan. 24 Time: N/A
Hulu
Series: "Goop Lab with Gwyneth Paltrow" Net: Netflix Premiere Date: Friday, Jan. 24 Time: N/A
Netflix
Series: "The Circus" Net: Showtime Premiere Date: Sunday, Jan. 26 Time: 8 p.m.
Showtime
Series: "Our Cartoon President" Net: Showtime Premiere Date: Sunday, Jan. 26 Time: 8:30 p.m.
Showtime
Series: "Justin Bieber: Seasons" Net: YouTube Premiere Date: Monday, Jan. 27 Time: N/A
YouTube
Series: "Biggest Loser" Net: USA Network Premiere Date: Tuesday, Jan. 28 Time: 9 p.m.
USA Network
Series: "Miracle Workers: Dark Ages" Net: TBS Premiere Date: Tuesday, Jan. 28 Time: 10:30 p.m.
TBS
Series: "Next in Fashion" Net: Netflix Premiere Date: Wednesday, Jan. 29 Time: N/A
Netflix
Series: "Miz & Mrs." Net: USA Network Premiere Date: Wednesday, Jan. 29 Time: 10 p.m.
USA Network
Series: "The Stranger" Net: Netflix Premiere Date: Thursday, Jan. 30 Time: N/A
Netflix
Series: "BoJack Horseman" Net: Netflix Premiere Date: Friday, Jan. 31 Time: N/A
Netflix
Series: "Ted Bundy: Falling for a Killer" Net: Amazon Prime Video Premiere Date: Friday, Jan. 31 Time: N/A
Amazon Prime Video
Series: "Ragnorak" Net: Netflix Premiere Date: Friday, Jan. 31 Time: N/A
Netflix
Series: "The Masked Singer" Net: Fox Premiere Date: Sunday, Feb. 2 Time: 10:30 p.m.
Fox
Series: "Manhunt: Deadly Games" Net: Spectrum Premiere Date: Monday, Feb. 3 Time: N/A
Spectrum
Series: "McMillions" Net: HBO Premiere Date: Monday, Feb. 3 Time: 10 p.m.
HBO
Series: "Desus & Mero" Net: Showtime Premiere Date: Monday, Feb. 3 Time: 11 p.m.
Showtime
Series: "Lego Masters" Net: Fox Premiere Date: Wednesday, Feb. 5 Time: 9 p.m.
Getty
Series: "Interrogation" Net: CBS All Access Premiere Date: Thursday, Feb. 6 Time: N/A
CBS All Access
Series: "Katy Keene" Net: The CW Premiere Date: Thursday, Feb. 6 Time: 8 p.m.
The CW
Series: "Brooklyn Nine-Nine" Net: NBC Premiere Date: Thursday, Feb. 6 Time: 8 p.m.
NBC
Series: "The Sinner" Net: USA Network Premiere Date: Thursday, Feb. 6 Time: 9 p.m.
USA Network
Series: "Indebted" Net: NBC Premiere Date: Thursday, Feb. 6 Time: 9:30 p.m.
NBC
Series: "Tommy" Net: CBS Premiere Date: Thursday, Feb. 6 Time: 10 p.m.
CBS
Series: "Briarpatch" Net: USA Network Premiere Date: Thursday, Feb. 6 Time: 10 p.m.
USA Network
Series: "Mythic Quest: Raven's Banquet" Net: Apple TV+ Premiere Date: Friday, Feb. 7 Time: N/A
Apple TV+
Series: "Locke & Key" Net: Netflix Premiere Date: Friday, Feb. 7 Time: N/A
Netflix
Series: "MacGyver" Net: CBS Premiere Date: Friday, Feb. 7 Time: 8 p.m.
CBS
Series: "High Maintenance" Net: HBO Premiere Date: Friday, Feb. 7 Time: 11 p.m.
HBO
Series: "Homeland" Net: Showtime Premiere Date: Sunday, Feb. 9 Time: 9 p.m.
Showtime
Series: "Kidding" Net: Showtime Premiere Date: Sunday, Feb. 9 Time: 10 p.m.
Showtime
Series: "Cherish the Day" Net: OWN Premiere Date: Tuesday, Feb. 11 Time: 10 p.m.
OWN
Series: "For Life" Net: ABC Premiere Date: Tuesday, Feb. 11 Time: 10 p.m.
ABC
Series: "Survivor" Net: CBS Premiere Date: Wednesday, Feb. 12 Time: 8 p.m.
CBS
Series: "The Soup" Net: E! Premiere Date: Wednesday, Feb. 12 Time: 10 p.m.
E!
Series: "Narcos: Mexico" Net: Netflix Premiere Date: Thursday, Feb. 13 Time: N/A
Netflix
Series: "Love Is Blind" Net: Netflix Premiere Date: Thursday, Feb. 13 Time: N/A
Netflix
Series: "High Fidelity" Net: Hulu Premiere Date: Friday, Feb. 14 Time: N/A
Hulu
Series: "Utopia Falls" Net: Hulu Premiere Date: Friday, Feb. 14 Time: n/A
Hulu
Series: "Visible: Out on Television" Net: Apple TV+ Premiere Date: Friday, Feb. 14 Time: N/A
Apple TV+
Series: "Outlander" Net: Starz Premiere Date: Sunday, Feb. 16 Time: 8 p.m.
Starz
Series: "American Idol" Net: ABC Premiere Date: Sunday, Feb. 16 Time: 8 p.m.
ABC
Series: "Duncanville" Net: Fox Premiere Date: Sunday, Feb. 16 Time: 8:30 p.m.
Fox
Series: "Extreme Makeover: Home Edition" Net: HGTV Premiere Date: Sunday, Feb. 16 Time: 9 p.m.
HGTV
Series: "Good Girls" Net: NBC Premiere Date: Sunday, Feb. 16 Time: 10 p.m.
NBC
Series: "Last Week Tonight With John Oliver" Net: HBO Premiere Date: Sunday, Feb. 16 Time: 11 p.m.
HBO
Series: "Sacred Lies" Net: Facebook Watch Premiere Date: Thursday, Feb. 20 Time: N/A
Facebook Watch
Series: "The Chef Show" Net: Netflix Premiere Date: Wednesday, Feb. 19 Time: N/A
Netflix
Series: "Gentefied" Net: Netflix Premiere Date: Friday, Feb. 21 Time: N/A
Netflix
Series: "Hunters" Net: Amazon Prime Video Premiere Date: Friday, Feb. 21 Time: N/A
Amazon Prime Video
Series: "Better Call Saul" Net: AMC Premiere Date: Sunday, Feb. 23 Time: 10 p.m.
AMC
Series: "The Voice" Net: NBC Premiere Date: Monday, Feb. 24 Time: 8 p.m.
NBC
Series: "Little Big Shots" Net: NBC Premiere Date: Monday, Feb. 24 Time: 10 p.m.
NBC
Series: "I Am Not Okay With This" Net: Netflix Premiere Date: Wednesday, Feb. 26 Time: N/A
Netflix
Series: "Altered Carbon" Net: Netflix Premiere Date: Thursday, Feb. 27 Time: N/A
Netflix
Series: "Jersey Shore: Family Vacation" Net: MTV Premiere Date: Thursday, Feb. 27 Time: 8 p.m.
MTV
Series: "RuPaul's Drag Race" Net: Vh1 Premiere Date: Friday, Feb. 28 Time: 8 p.m.
Vh1
Series: "Dispatches From Elsewhere" Net: AMC Premiere Date: Sunday, March 1 Time: 10 p.m.
AMC
Series: "Breeders" Net: FX Premiere Date: Monday, March 2 Time: 10 p.m.
FX
Series: "Twenties" Net: BET Premiere Date: Wednesday, March 4 Time: 10 p.m.
BET
Series: "The Deed: Chicago" Net: CNBC Premiere Date: Wednesday, March 4 Time: 10 p.m.
CNBC
Series: "Dave" Net: FXX Premiere Date: Wednesday, March 4 Time: 10 p.m.
FXX
Series: "Castlevania" Net: Netflix Premiere Date: Thursday, March 5 Time: N/A
Netflix
Series: "Devs" Net: FX on Hulu Premiere Date: Thursday, March 5 Time: N/A
FX
Series: "Better Things" Net: FX Premiere Date: Thursday, March 5 Time: 10 p.m.
FX
Series: "Cake" Net: FXX Premiere Date: Thursday, March 5 Time: 10 p.m.
FXX
Series: "Amazing Stories" Net: Apple TV+ Premiere Date: Friday, March 6 Time: N/A
Apple TV+
Series: "Hillary" Net: Hulu Premiere Date: Friday, March 6 Time: N/A
Hulu
Series: "The Most Dangerous Animal of All" Net: FX Premiere Date: Friday, March 6 Time: 10 p.m.
FX
Series: "Ride With Norman Reedus" Net: AMC Premiere Date: Sunday, March 8 Time: 11 p.m.
AMC
Series: "Cosmos: Possible Worlds" Net: Nat Geo Premiere Date: Monday, March 9 Time: 9 p.m.
Nat Geo
Series: "Council of Dads" Net: NBC Premiere Date: Tuesday, March 10 Time: 10 p.m.
NBC
Series: "On My Block" Net: Netflix Premiere Date: Wednesday, March 11 Time: N/A
Netflix
Series: "Elite" Net: Netflix Premiere Date: Friday, March 13 Time: N/A
Netflix
Series: "Flack" Net: Pop TV Premiere Date: Friday, March 13 Time: 10 p.m.
Pop TV
Series: "The Wall" Net: NBC Premiere Date: Sunday, March 15 Time: 7 p.m.
NBC
Series: "Westworld" Net: HBO Premiere Date: Sunday, March 15 Time: 9 p.m.
HBO
Series: "Black Monday" Net: Showtime Premiere Date: Sunday, March 15 Time: 10 p.m.
Showtime
Series: "Roswell, New Mexico" Net: The CW Premiere Date: Monday, March 16 Time: 9 p.m.
The CW
Series: "The Plot Against America" Net: HBO Premiere Date: Monday, March 16 Time: 9 p.m.
HBO
Series: "My Brilliant Friend" Net: HBO Premiere Date: Monday, March 16 Time: 10 p.m.
HBO
Series: "Motherland: Fort Salem" Net: Freeform Premiere Date: Wednesday, March 18 Time: 9 p.m.
Freeform
Series: "Little Fires Everywhere" Net: Hulu Premiere Date: Wednesday, March 18 Time: N/A
Hulu
Series: "Brockmire" Net: IFC Premiere Date: Wednesday, March 18 Time: 10 p.m.
IFC

1 of 138

Here’s when 137 broadcast, cable and streaming series debut and come back

Winter is well underway and with it, naturally, comes the Winter TV season. In honor of the colder months and their small-screen offerings, TheWrap has rounded up the premiere dates for not just the new and returning shows on Fox, ABC, NBC, CBS and The CW, but also the ones for the eagerly anticipated series hitting cable channels and streaming services this winter. Click through our gallery to find out when your favorite winter shows will be back and when your possible new favorites will debut.

Also Read: Why Netflix Is Betting You’ll Want ‘The Witcher’ Season 2 – Before You’ve Seen Season 1

View In Gallery