The European branch of Peacock TV, a prominent US streaming service, experienced a significant decline in revenue, dropping by over £100 million in the year preceding its removal from Sky, as per recently disclosed documents. Formerly offering streaming services in the UK, Germany, and Italy through Sky, the company observed a decrease in turnover to £28.4 million in 2023 from £163 million the previous year. Peacock attributed this revenue reduction to the gradual discontinuation of its streaming services across Europe.
Consequently, NBC Universal’s streaming platform, which had launched in the UK towards the end of 2021, ceased its operations at the beginning of 2024 due to the challenging sales performance. Despite the decline in revenue, the company managed to boost its pre-tax profit to £501,000 during the year, up from £480,000 in 2022. In a statement released to Companies House, Peacock acknowledged operating in a fiercely competitive landscape, contending with various companies offering a wide array of communication and entertainment services amidst evolving consumer preferences and technological advancements.
While facing challenges in Europe, Peacock TV’s US division continued to thrive, with revenue for the last quarter of 2023 surpassing $1 billion (£772 million) for the first time, marking a 57% surge from the prior year. The streaming platform concluded the year with 31 million paying subscribers, having added over three million subscribers in the final quarter. Despite a loss of $825 million (£636.6 million) in the last quarter, an improvement from $978 million (£754.9 million) in the previous year, Peacock’s Group President, Mike Cavanagh, highlighted the company’s investment in network and technology platforms as pivotal in delivering a seamless user experience and positioning the company for success in the digital era.
In a broader context, other streaming platforms have also witnessed notable developments. Disney’s streaming service recently achieved profitability for the first time since its inception in 2019, driven by popular content from its Hulu network like The Bear. The entertainment giant reported a $47 million profit (£37.44 million) in the second quarter of the fiscal year, following significant losses since its launch. Disney’s strategic measures, including cost-cutting and price adjustments, have contributed to this positive financial outcome.
Similarly, Netflix reported a substantial increase in subscribers for the fourth quarter, surpassing expectations and boosting full-year revenue by 12% to $33.7 billion (£26.5 billion). The company’s operating income in the final quarter also exceeded projections, reflecting a resilient performance in the competitive streaming landscape. These developments underscore the dynamic nature of the streaming industry, characterized by evolving consumer preferences, technological advancements, and intense competition among key players.
