A recent analysis of catalog demand share by release type done by Parrot Analytics underscores why NBC and Bravo are so valuable to NBCUniversal: both significantly over perform in audience demand, solidifying their importance to Comcast's entertainment strategy.
While NBCUniversal’s linear networks still generate valuable free cash flow, their declining status makes a spinoff a logical step. Retaining top-performing networks like NBC and Bravo ensures they can continue fueling Peacock’s growth. This move allows NBCU to leverage its premium linear strengths while offloading under performers that could weigh down its share price as the pay-TV market continues to shrink.
Broadcast series, mostly from NBC, accounted for 12.9% of the supply for series available on Peacock in Q3 2024, and 36.1% of the demand. This means demand for broadcast series over-performed supply by a margin of 2.8x. Meanwhile, cable accounted for 34.1% of the series available on Peacock and 38.7% of the audience demand. While this is still a positive ROI, it represents an over-performance of just 1.1x.
Separating out Bravo further demonstrates its value to the future of NBCU. The reality powerhouse accounted for 5.7% of supply share, and 9.8% of demand share, an over-performance of 1.72x. Peacock originals were underwater when comparing demand to supply, with a ratio of 0.88x.
NBCU’s decision to focus on monetizing the broad reach of broadcast — especially sports rights — while cutting its cable losses is one that will be closely watched and likely followed by Warner Bros. Discovery, Paramount, and Disney in 2025.
In a rapidly evolving media landscape, NBCUniversal’s strategy to prioritize high-demand networks like NBC and Bravo while divesting underperforming assets appears both pragmatic and forward-looking. As the pay-TV market faces continued declines, leveraging proven performers to drive growth on Peacock provides a path for sustainable success. This shift reflects a broader trend across the industry, where balancing traditional linear strengths with the agility of streaming is becoming essential. NBCU’s focus on maximizing its top assets and sports rights underscores the company's adaptive approach to future-proof its business, a strategy that could serve as a model for peers navigating the turbulent waters of modern media.
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