10 DEC 2019

COMCAST PLANS TO SPEND $2 BILLION ON PEACOCK

Michael Cavanagh, Chief Financial Officer of the company, said at a UBS investor conference in New York that the company “will ramp quickly next year on spending on Peacock”.

10 DEC 2019

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Comcast plans to spend $2 billion on its coming Peacock service in the streaming outlet’s first two years, according to Bloomberg. “We will ramp quickly next year on spending on Peacock,”  Michael Cavanagh, Chief Financial Officer of the company, said at a UBS investor conference in New York. He also indicated that the group expects Peacock to break even by its fifth year.

Along with AT&T’s HBO Max, Peacock stands to be a relatively late entry in the populated market for streaming-video services when it launches in April. Unlike paid-subscription rivals such as Netflix, Disney+ and Apple TV+, Peacock will be free to Comcast cable subscribers. However, in Cavanagh’s words, the service would have various tiers of pricing for others.

Disney has said it plans to spend $1 billion on programming alone for the first year of Disney+, which launched last month and quickly signed up more than 10 million subscribers. Streaming leader Netflix heavily outspends its competitors, expecting to splash out $15 billion on programming this year.

We will ramp quickly next year on spending on Peacock” Michael Cavanagh Chief Financial Officer of Comcast