NBC Universal has some exciting things coming this year, with the most notable being the official launch of their new streaming service ‘Peacock.’
For those who haven’t heard of ‘Peacock,’ it’s NBC’s new streaming service that is set to launch of July 15th, 2020. ‘Peacock’ was named after the logo of NBC and is an American over-the-top subscription video on demand streaming service.
The majority of us utilize streaming services such as Netflix, Amazon, and Hulu to stream originals on each platform or catch up on missed shows, but did you know that ‘Peacock’ offers something that those rival companies haven’t made available yet?
NBC Universal will offer 3 different tiers for ‘Peacock,’ with the first tier being free (it will make the majority of its money from advertisements,) the second tier offering more content and only some advertising for 4.99 a month, and the final tier that will be 9.99 a month with no advertising. Although this tier system differs from that of other streaming platforms, what really sets ‘Peacock’ apart from other platforms is the fact that they don’t want consumers cancelling cable–instead, they want Peacock to be a supplement product.
In saying this, NBC Universal plans to offer ‘Peacock’ Premium for no additional charge to cable subscribers because of the fact that they don’t want you canceling cable or replacing cable. It’s evident that streaming products do have the ability to replace the cable bundle, but NBC Universal’s strategy hedges this outcome by building something that could one day operate as the company’s primary source of content distribution while also marketing it as an add-on service that’s free to many people. If this happens, the question is whether NBC Universal can turn ‘Peacock’ into a vehicle that generates more revenue-per-user than the cable bundle for the same amount of subscribers — today (while keeping costs the same or lower).