Comcast's Peacock-Google Platform Launch Slated for July

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Peacock’s Content Library to Gain Subscriber Attention

Peacock’s offering includes a free, ad-supported tier limited to a range of 75K hours of content. Additionally, a $4.99 premium, ad-supported tier with 15K hours of Peacock content and an ad-free premium tier that will cost $9.99 per month are available.

The platform will soon be the exclusive streaming home of The Office and Parks and Rec, and it will host Tokyo Olympics, which was postponed due to coronavirus. Peacock’s full content line-up includes a mix of shows from the NBCUniversal empire, new original content and select movies ranging from the Despicable Me franchises to Knocked Up.

Peacock’s slate of original drama and comedy includes a crime series podcast Dr. Death starring Alec Baldwin and an adaptation of Brave New World with Demi Moore, Rutherford Falls starring Ed Helms, and Girls5Eva produced by Tina Fey.

Additionally, Peacock will stream Two and a Half Men and The George Lopez Show from AT&T’s Warner Brothers and ViacomCBS-owned Paramount Network’s hit series Yellowstone.

Moreover, a licensing deal with Lionsgate will add movies such as John Wick, while the NBCUniversal-owned Telemundo will provide 3,000 hours of Spanish-language original programming.

Peacock’s Ad-Based Subscription: Potent Threat for Netflix (NASDAQ:NFLX)

Comcast’s hybrid business (both subscription and advertising) model is expected to be a key differentiator in an overcrowded streaming industry saturated with pure subscription services.

While subscription streaming services like Netflix NFLX, Amazon’s Prime Video, Disney+ and Apple TV+ offer ad-free services, Peacock, Quibi and ViacomCBS’ CBS All Access will have ad-supported options, as does Hulu.

Netflix is dominating the streaming space with 182 million paid subscribers, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content. However, Netflix expects viewing and subscriber growth to decline once the coronavirus-related lockdowns and movement restrictions are lifted.

Moreover, entry of Peacock’s new low cost and ad-based subscription service is likely to threaten Netflix’s dominance in the streaming industry. Peacock will include 10 advertising formats, including ‘shoppable’ ads which let viewers purchase products but limit the duration to 5 minutes or less per hour.

Comcast hopes to attract advertisers through the vast customer data it gathers to target commercials based on viewers’ interests, including data from Comcast's cable TV set-top boxes.

Key brand sponsors like Target (NYSE:TGT), Unilever (NYSE:UL), State Farm and Eli Lilly (NYSE:LLY) have signed early advertising deals for Peacock, which are expected to generate millions in upfront advertising revenues for the company in the near term.

Notably, the Zacks Rank #3 (Hold) will invest $2 billion, largely in technology, marketing and programming for Peacock in 2020 and 2021, and plans to break even by 2024, setting a target of 30-35 million active accounts by that time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Comcast’s subscription free service is expected to strengthen viewership through Peacock’s compelling content quality, diversity and exclusivity, which will further drive ad monetization. Notably, Peacock will also include binge ads feature where sponsors will make the fourth episode ad-free once viewers watch three episodes of a show.

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