How Comcast leverages its existing platform and capabilities to grow Peacock

Comcast, the largest cable operator in the US, has been facing a decline in its pay TV subscribers as more customers cut the cord and switch to streaming services. In the fourth quarter of 2023, Comcast lost 248,000 video customers, bringing its total to 19.4 million. However, Comcast has also been investing in its own streaming service, Peacock, which launched in July 2020 and has since gained over 33 million sign-ups. How did Comcast manage to grow Peacock while losing pay TV customers? The answer lies in how Comcast built Peacock into its existing platform and leveraged its existing capabilities.

 

Building Peacock into the Xfinity platform

One of the key strategies that Comcast used to grow Peacock was to integrate it into its Xfinity platform, which includes its cable, broadband, and voice services. Comcast made Peacock available for free to its Xfinity customers, giving them access to thousands of hours of content, including live sports, news, movies, and shows. Comcast also made Peacock easy to access through its Xfinity X1 and Flex devices, which are connected TV boxes that offer a unified interface for streaming apps, live TV, and on-demand content. By building Peacock into the Xfinity platform, Comcast was able to leverage its existing customer base and distribution network, as well as provide a seamless and convenient user experience.

 

Leveraging existing content and partnerships

Another key strategy that Comcast used to grow Peacock was to leverage its existing content and partnerships. Comcast owns NBCUniversal, which produces and owns a vast library of content, including popular franchises such as The Office, Parks and Recreation, Law and Order, and Harry Potter. Comcast also has exclusive rights to stream certain sports events, such as the Olympics, the Premier League, and the NFL. By offering this content on Peacock, Comcast was able to attract and retain viewers who are fans of these shows and sports. Comcast also partnered with other content providers, such as ViacomCBS, Lionsgate, and WWE, to expand its content offerings and appeal to a wider audience.

 

Improving efficiency and processes

A third key strategy that Comcast used to grow Peacock was to improve its efficiency and processes. Comcast leveraged its existing technology and infrastructure, such as its cloud-based platform, its advertising technology, and its broadband network, to deliver a high-quality and reliable streaming service. Comcast also optimized its content delivery and recommendation algorithms, using data and analytics to understand user behavior and preferences, and to personalize the user experience. Comcast also streamlined its operations and reduced its costs, by consolidating its streaming assets, such as NBC Sports Gold and Seeso, into Peacock, and by sharing resources and talent across its divisions.

 

Comcast has shown that it is possible to grow a streaming service while facing a decline in pay TV subscribers, by building it into its existing platform and leveraging its existing capabilities. By integrating Peacock into the Xfinity platform, by offering a rich and diverse content library, and by improving its efficiency and processes, Comcast has created a competitive advantage and a loyal customer base for Peacock. Peacock is expected to reach 35 to 50 million sign-ups by 2024, and to generate $2.5 billion in revenue by 2025. Comcast's success with Peacock demonstrates how traditional media companies can adapt and innovate in the streaming era.