Peacock Gains 3 Million Subscribers in Q3, Reaches 36 Million as Comcast Mulls Spin-Off
Comcast recently announced that its streaming service, Peacock, gained three million new subscribers in the third quarter, bringing its total paid subscriber count to 36 million by the end of September. This marked a significant 29% increase from the previous year’s 27.9 million subscribers.
The surge in subscribers also translated into a substantial revenue boost for Peacock, with a notable 82% increase to $1.5 billion from $824.2 million. This growth was largely attributed to heightened interest from subscribers and advertisers during the Paris Olympics. Furthermore, the streaming service’s operating loss decreased by 23% to $436 million compared to $565 million in the previous year.
During the Paris Games, Peacock streamed a staggering 23.5 billion minutes, marking a 40% increase from the combined streaming minutes of all previous summer and winter Olympics. The success of the Paris Games also reflected positively on Comcast’s media segment, which saw a $1.9 billion rise in ad revenue to $3.34 billion, offset by a 42.9% increase in operating expenses.
On a strategic front, Comcast’s president, Michael Cavanagh, revealed that the company opted out of bidding on Paramount Global and its Paramount+ SVOD platform. Instead, Comcast expressed interest in exploring third-party streaming partnerships while considering the possibility of spinning off its pay-TV networks into a separate entity.
NBCUniversal’s pay-TV properties, including Oxygen, True Crime, Bravo, and others, have been integral to the company’s media portfolio. Cavanagh acknowledged the evolving landscape of the video industry, with a noticeable shift from traditional pay-TV to streaming services. As a result, Comcast is evaluating the optimal path forward for its assets to adapt to changing consumer preferences.
Despite the positive strides in its streaming service, Comcast experienced a decline in cable TV subscribers, shedding 365,000 subscribers and ending the quarter with 12.8 million subscribers. Cavanagh hinted at the potential creation of a new company focused on cable networks to leverage opportunities in the evolving media landscape and enhance shareholder value.
The media segment’s total operating income decreased by 10% to $650 million, despite a 36.5% increase in segment revenue to $8.23 billion. As Comcast navigates the dynamic media industry, the company remains committed to exploring innovative strategies to capitalize on the growing demand for streaming services and adapt to the changing media landscape.
