Peacock loses 500k subs, Comcast execs discuss evolving content mix post-NBA deal

Peacock lost around 500,000 paid subscribers in the second quarter, leaving it with a total of 33 million, as the Comcast-owned US streamer’s adjusted losses narrowed to US$348m versus US$639m in the prior quarter.

Brian Roberts

The streaming platform’s revenue climbed to US$1bn in the second quarter, up from US$820m in the same period a year ago.

During a Tuesday morning earnings call, Comcast execs said they were focused on subscriber retention rather than acquisition this quarter after adding three million subs in Q1 when it exclusively carried the NFL Wild Card game between the Miami Dolphins and the Kansas City Chiefs. Execs also said the most recent quarter was marked by a lack of new tentpole content, contributing to subscriber losses.

In its media segment, revenue grew 2.1% to US$6.32bn in Q2 thanks to higher revenues in domestic advertising, domestic distribution and international networks, while adjusted earnings were up 9% to US$1.36bn.

Within its studios segment, revenue fell 27% to US$2.25bn due to lower theatrical revenue and content licensing revenue. Comcast said the decline in theatrical was caused by a tough comparison to the prior year, when it released The Super Mario Bros Movie and Fast X, while content licensing revenue declined primarily due to the timing of content being made available by Comcast’s TV studios.

Chairman and CEO Brian Roberts and president Mike Cavanagh also broke down the 11-year mega-deal that Comcast says it has in place with the NBA to show games across broadcaster NBC and Peacock.

According to Comcast, the deal, which will begin during the 2025/26 NBA season, will see it carrying 100 regular-season games annually across NBC and Peacock, in addition to first- and second-round play-off games and six NBA conference finals.

While the exact price Comcast will pay has not yet been confirmed, the total value of the NBA’s package of rights (which is being split among several other companies) is expected to top US$76bn for the 11-year term. Estimates suggest Comcast will spend around US$25bn on its package of NBA rights over the course of the agreement.

Mike Cavanagh

For NBC, which has not carried NBA games since 2002, the arrival of the basketball league on its airwaves will represent a significant shake-up in its primetime scheduling, as well as a presumed adjustment in what other types of content it develops and produces.

When asked by an analyst about how the new NBA deal will impact programming spending in other areas of the business, including general entertainment, Roberts said the company will “rebalance” how it spends on content across both NBC and Peacock.

He added that the NBA deal would bring a new demographic to NBC and Peacock, creating opportunities to reach new audiences. According to data on its audience make-up, NBA viewership in the US is relatively evenly spread across age groups, with 30% aged 18 to 34 and another 30% aged 55 and older. Reports have also indicated that the NBA’s fan base is more diverse than the other four major sporting leagues in the US.

“Our content teams are now very focused on that new audience and what we’re going to be able to do to drive entertainment content, with the advantage of being linked closely to the NBA and the audience that follows it,” said Roberts.

He noted that Comcast execs had been encouraged by the appetite of sports viewers subscribing to Peacock to watch non-sports content. “When you zoom out and think about the total picture of what we’re trying to do, which is to bring our excellent TV media assets into the future, we view the NBA as an excellent piece in that puzzle,” he said.

In terms of whether Peacock might be able to break even next year, given its current trajectory of narrowing losses, Cavanagh said he views the streamer as a broader piece of Comcast’s media assets rather than a standalone entity that must strive toward reaching profitability as soon as possible.

“Strategically, to not pursue that [streaming] path would leave the existing media business on a downward trend, so we’re thinking about it over multiple years,” he said. “I’m very confident that what we’re doing around Peacock and our media business, operating together, is going to put us on a path to optimise that business.”