Comcast Looking to Cut $1 Billion From NBCUniversal TV Networks Budget

Comcast Corp. is reportedly looking to cut upwards of $1 billion from the budget of NBCUniversal and its other TV networks. Analysts are saying that Comcast could be trying to emulate competitor Disney by reallocating its budget for next year away from traditional broadcast TV and into its streaming service, Peacock, as well as Universal theme parks. Reports have been circulating for a while now that Comcast is looking to boost its media business, as the company doesn't feel like it's getting the maximum potential out of one of the biggest entertainment portfolios in the market. NBC TV and Universal Movies are still profitable; Universal's theme parks are still viable tourist destinations, and NBCU subsidiaries like Bravo and E! are definitely leading brands in the TV space. 

On the flip side of that same coin, Comcast has been one of the slowest movers in the new era of the streaming wars. Peacock ended the last quarter with 13 million paid subscribers and 27 million total subscribers, marking no real increase. Compared to Disney+ (152.1M), Netflix (220.67M), and HBO Max (76.8M) Comcast only has drops in the streaming bucket right now – so expanding that lane (which is so clearly the future) makes sense. 

Peacock's initial strategy when it launched (July 2020) was to offer viewers binges of NBC's most popular sitcom shows from the 2000s and 2010s, including The Office, 30 Rock, Parks and Rec, and others. In the last year or so, Peacock has tried to adapt with the time of the pandemic, offering viewers a quick turnaround on theatrical releases coming to streaming (The Bad Guys), and investing in bigger and better original content (The Resort) – as well as high-profile reboots of classic shows the studio has access to (Saved by the Bell, Bel-Air). Peacock is even doing same-day release for Halloween Ends, the final in the reboot trilogy, and will be doing next-day releases for NBC and Bravo shows. There are also a number of TV spinoffs for popular films like John Wick, Pitch Perfect and The Best Man. Big franchise series are also getting a launch (Vampire Academy), as Peacock tries to mold its brand. Although it's less of a good sign that the service is also offering big discounts just to pull in new subs. 

Indeed, news of a flat quarter for Peacock is not good, and changes are clearly needed, as the entertainment business continues to evolve in a post-pandemic era. 

You can sign up for Peacock HERE. 

Source: Bloomberg