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So, Matt, you are launching Peacock into a very crowded
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market.
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We've been talking about subscription overload,
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subscription fatigue, and there are plenty of other
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ad supported services as well.
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And you're launching in the midst of a pandemic.
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How do you make sure that Peacock can carve out
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market share?
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Well, I think if you just look at it
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from a broad perspective, if you love television,
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there's probably no better time to be alive than now.
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There's certainly lots of options for consumers,
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but we actually think in a competitive market,
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we've actually identified a white space opportunity,
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which is to launch a premium ad supported streaming service
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that really taps into the breadth and the depth
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of the content that we offer at NBC Universal
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plus even beyond NBC Universal,
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with 20,000 hours of programming.
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And the strategy is unique in a few different ways.
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Julia, certainly, we're gonna deliver a very robust
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on demand offering, but we also have built out
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linear channels as part of Peacock in addition to creating
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a service that also has a lot of timely
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and current programming like news and sports.
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So we think it's the combination of these things
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that not only creates a unique experience,
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but it's also available at a very affordable price of free.
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And we're seeing that the market is moving towards
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looking for other options and alternatives beyond
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just a traditional subscription service.
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Now, you mentioned sports, but obviously,
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we're waiting for a lot of sports to come back,
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and you thought you're gonna have the Olympics right now,
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when you announced Peacocks launch for this summer,
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how much are the changes to your production schedule,
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and also the lack of sports can impact your ability
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to do a big launch right now?
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Well, as you mentioned, we had made the decision
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that we were gonna launch in two phases,
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first with Comcast and then launch nationally tomorrow.
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And I think in retrospect, that turned out to be,
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very effective strategy for us because we got
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a lot of learning on Comcast given that Peacocks
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has been available for three months
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to 15 million subscribers.
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And what we found, I think, certainly the global pandemic,
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I think you've seen TV usage increase across the board,
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is we've actually seen a lot of the content on Peacock,
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which is very familiar to people.
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It's programming that I think a lot of people
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gravitate towards, it's almost like comfort food,
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whether it's Everyone Loves Raymond or Two and a Half Men
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or King of Queens or Cheers, right alongside
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some more currencies in programming.
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And, we had set some very aggressive targets for ourselves
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on what we were planning to accomplish
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for the end of the year on Comcast.
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And we beat those targets within 60 days of launching there.
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So we're encouraged that the programming that we have
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really seems to be resonating, and when we launch tomorrow,
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we're only expanding that offering with original
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programming.
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And the Olympics was certainly something that we were
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excited to have this summer,
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but what we don't have this year, we're gonna more than gain
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next year, because that's also when we're gonna have almost
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two Olympics within a relatively short amount of time,
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and we have so many other things that are coming to Peacock,
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like The Office is coming exclusively to Peacock.
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We were able to structure an arrangement
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to put the NFL wildcard game on Peacock,
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we also just announced, we're moving Premier League games
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exclusively to Peacock.
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So what's exciting is not only what we're launching
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with tomorrow, but I think if you look at the longer term,
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trajectory that we've set out for ourselves,
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there's just a lot of positive things that we're excited
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about that we know are coming new in the next several months
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and even the next several years.
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Now you have the advertising model for the free version
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of the service.
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You also have the subscription version,
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and then you also have the fact that you're working
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with different cable providers to make sure that you could
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offer Peacock through them as you have with Cox
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as well as of course Comcast.
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Looking at all these different pieces of the puzzle,
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what's gonna really define success for Peacock
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moving forward, is it more about the advertising
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or starting to generate subscription revenue as well?
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Well, we're really positioning ourselves
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as a premium ad supported service,
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we are going to market with, we think probably
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the most consumer friendly ad load for any ad supported
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content with no more than five minutes of ads per hour
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to very uncluttered environment.
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So when we look at the next several years,
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we see a path to getting to 30 to 35 million monthly
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active accounts.
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Advertising is the primary revenue stream for Peacock
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but as you mentioned, there is also a subscription version
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for Peacock.
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So, we believe that having a frictionless way for somebody
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to access the app, get a really robust experience of content
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for free, is gonna really tap into the pulse
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of what a lot of people are looking for.
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But we also know that there are segments of the population.
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They're almost like content carnivores,
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they love television, they just want access to more,
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so there is a $5 a month subscription version of Peacock
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as well.
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So we're giving consumers choice, as you mentioned,
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we were able to structure a deal with Cox and Comcast
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to bundle in the premium version of Peacock
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at no additional cost.
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If you fast forward out to the next 12 to 18 months,
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we believe that we can structure similar arrangements
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with other distributors.
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So, the opportunity for us is we think that Peacock
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will be available de facto free to most of the country,
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either through the Free Tier or through some form
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of bundling, which is gonna give us the scale
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that we're looking for and for advertising.