The Paris 2024 Olympics present a pivotal moment for Peacock, Comcast’s streaming platform, as it seeks to not only attract new subscribers but also retain them in a competitive streaming landscape. This will be the first Olympics where Peacock will showcase the entire Summer Games, marking a significant shift from previous years when the platform had limited rights.
Peacock’s journey began in 2020, and while it has had two Olympic experiences since then, the upcoming Paris Games represent a fresh start. Analyst Craig Moffett from MoffettNathanson notes that this Olympics offers Comcast a clean slate, allowing them to leverage lessons learned from past events. The favorable time zone of Paris, just six hours ahead of the East Coast, contrasts sharply with the 13-hour difference during the Tokyo Games, making it easier for U.S. audiences to engage with the events live.
The excitement surrounding the host city of Paris, coupled with the end of pandemic-related restrictions, adds to the optimism for viewership. Peacock will air all events, providing a comprehensive Olympic experience for both casual and dedicated fans. Molly Solomon, NBC’s executive producer of the Olympics, emphasizes that this is a new era for streaming rights, allowing Peacock to be the go-to destination for Olympic content.
The Olympics are crucial for Peacock, especially as traditional media companies strive to retain subscribers and achieve profitability. Live sports have consistently drawn significant viewership, and the Olympics are no exception. The historical relationship between NBCUniversal and the Olympics dates back to 1936, and this year marks NBC’s 18th Olympic Games, with a hefty $7.65 billion investment in media rights through 2032.
The Tokyo Olympics in 2021 saw the lowest viewership for Summer Games, and the Beijing Winter Olympics in 2022 followed suit with disappointing numbers. However, the Paris Games are expected to attract a larger audience, with 60% of U.S. consumers indicating they plan to stream the events, according to a recent survey. Advertisers are also showing strong interest, with NBCUniversal reporting over $1.2 billion in advertising sales for the Summer Games, a record for the Olympics.
Peacock’s strategy includes branding the evening coverage as “Primetime in Paris,” where major events will be replayed alongside in-depth programming. The platform will provide live coverage of every event, allowing fans to watch without needing a traditional cable subscription. High-profile events, such as basketball and gymnastics, are expected to draw significant viewership, especially with star athletes like Simone Biles competing.
Live sports remain a key driver for Peacock, which has benefited from its parent company’s extensive sports rights portfolio. The platform has seen success with events like the NFL Wild Card game, which attracted millions of new subscribers. Following the game, 90% of viewers continued to engage with other content on the platform, highlighting the potential for subscriber retention.
As of June 30, Peacock reported 33 million paid subscribers, a slight decrease from the previous quarter. However, the platform’s growth trajectory remains promising, especially with the upcoming Olympics. NBCUniversal’s recent announcement of an 11-year media rights deal with the NBA, which includes exclusive games for Peacock, further solidifies the platform’s commitment to sports.
Peacock’s approach to the Olympics includes innovative programming aimed at younger audiences. Comedians Kevin Hart and Kenan Thompson will co-host a series that highlights the best moments of the Games, blending humor with Olympic coverage. Additionally, Alex Cooper, known for her popular podcast, will host interactive watch parties, engaging viewers in real-time discussions.
In a groundbreaking move, Peacock will also utilize artificial intelligence to enhance the viewing experience. Users can expect personalized daily recaps narrated by the iconic Al Michaels, providing a unique touch to the coverage. This innovative use of technology aims to attract a younger demographic, as the median age of Peacock viewers during the Tokyo Olympics was significantly lower than that of traditional NBC viewers.
Despite the excitement surrounding the Olympics, Peacock is also facing challenges. The platform recently announced a price increase for its subscription plans, which will take effect shortly before the Games. The monthly rate for Peacock Premium will rise from $6 to $8, while Premium Plus will increase from $12 to $14. Annual rates will also see a hike, reflecting a broader trend in the streaming industry as companies seek to offset rising content costs.
While the price increase may pose a risk to subscriber retention, Peacock’s extensive Olympic coverage and innovative programming could help mitigate potential churn. The platform’s focus on live sports and exclusive events is designed to drive both subscription and ad revenue, positioning Peacock as a key player in the competitive streaming market.
As the Paris Olympics approach, Peacock is poised to make a significant impact in the streaming landscape. With a comprehensive coverage plan, innovative programming, and a commitment to retaining subscribers, the platform aims to solidify its position as a leading destination for Olympic content.
Source: CNBC, Reuters, The Hollywood Reporter
