In a recent article by the financial news outlet, CNBC, Comcast has revealed that its streaming platform, Peacock, has reached its “peak losses” after racking up nearly $1 billion in losses last quarter.
The company’s CEO, Brian Roberts, shared the news during an earnings report on Thursday. He stated that the losses were expected and that the company had budgeted for those losses since launching Peacock in the summer of 2020.
He also noted that, moving forward, the focus for Peacock will be on breakeven and profitability. Roberts went on to say that the losses aren’t a reflection of a poorly performing product, but instead an investment into the future.
Peacock is not just a streaming service, but a part of Comcast’s larger, integrated plan to use its existing broadband and cable networks to create a new and improved media experience. Roberts stated that while the current resources are being used to launch and promote Peacock, the platform will eventually become profitable and make money for Comcast.
The reason that Peacock has been losing money is due to its Sky advertising business, which was acquired by Comcast this summer. Sky is responsible for high-end marketing campaigns designed to increase viewership and engagement. These campaigns are expensive and take time to pay off.
In the meantime, Peacock is making money in other ways such as its subscription model and advertising revenue. This includes an introductory $4.99/month subscription plan, as well as an “Ad-Free” subscription for $9.99/month.
Despite the losses, Roberts remains optimistic that Peacock will see a turnaround soon. He noted that the company is working hard to improve the product and that it is gaining traction with viewers.
Overall, it seems that Comcast is confident that the long-term investments they are making into Peacock will pay off. While it remains to be seen whether or not Peacock will reach its goals of profitability, it is clear that Comcast is committed to making its streaming platform a success.