NBCUniversal will be unveiling its streaming service, Peacock, this Thursday in New York. The media company will unveil its offerings during an investor day event for the company.
Recently, other major media corporations like Disney+, HBO Max, and Apple TV announced launch dates for their streaming services, all of whom face competition from veteran subscription video companies like Hulu, Netflix, and Prime Video, among others. Peacock is the last of the major companies to join them and “launch” itself.
Thursday’s event will close out Phase 1 of the streaming era project. Phase 2 will focus on interaction between the services versus classic bundled pay-television services. Many believe streaming video services are the wave of the future and will replace pay-TV, which consists of network TV that cost users up to $100 a month. Evidence already suggest it’s happening. Nearly 80 million U.S. subscribers use cable TV or satellite, which is down from 100 million nearly a decade ago. In comparison, Netflix has 60 million subscribers and Americans still subscribe in higher numbers to satellite TV and cable services.
For services like Disney or CBS All-Access, their streaming products often work as complements to their traditional TV services instead of as replacements. But, the belief is still there that streaming services will replace them in the future.
Cellphones are an example of how this has already happened. Initially, cellphones were complements to landline phones. However, many American households have already replaced their landlines and depend 100 percent on their cellphones.
The benefits for streaming services is a lower-priced product, mobility (usability on any device), and new content. However, many consumers find that the quality of content is not on par with the offerings of a traditional network.
But, streaming services are expected to improve just as cellphones did from their initial development. Media companies expect this to happen within three to five years.
It’s anticipated that NBC will offer an advertised version of Peacock to its consumers. The offering will be sparse on content, but the company will offer a limited ad version for $5 a month and an add-free version for around $10 a month.
Existing and new Comcast NBC traditional pay-tv subscribers will have free access to Peacock with limited ads. It’s an interesting strategy for Comcast, who hopes Peacock will become more of an add-on service, rather than a replacement for its traditional network subscribers.