NBCUniversal Media Group chairman Matt Strauss says live sports are a strategic asset and describes a combined broadcast-and-streaming strategy, in an interview as Peacock becomes profitable for the first time this year and Comcast prepares to spin the business off into a standalone company.
In an interview with The Verge, Strauss said the company has replaced separate broadcast and streaming programming groups with what he calls "centers of excellence": one programming team, one marketing team, one product and technology team, all working to grow the portfolio together. He described the company's approach as content-first, platform-second.
The restructuring comes as Comcast prepares to spin off NBCUniversal into a standalone company, after spinning off most of its cable channels into Versant last year. Strauss said Brian Roberts and Mike Cavanagh made the decision, and that a standalone NBCUniversal will be able to move faster and make clearer capital allocation decisions. Sky, previously part of Comcast Cable, will move into the new company.
Strauss said live sports and events are a strategic asset, and the company is not trying to make everything exclusive to streaming. He pointed to a 17-day stretch this year he called “Legendary February” (the Super Bowl, the Milan Cortina Olympics and the NBA All-Star Game) which reached more than 225 million viewers. The Winter Olympics, with all events streamed live on Peacock, drew about 25 million viewers, roughly 96 percent higher than Beijing, with double the digital viewing minutes of every previous Winter Olympics combined and double the advertising revenue, he said.
The executive also described an experiment in sharing content across platforms. Strauss floated the possibility of premiering the Peacock comedy The Paper, created by Greg Daniels, on NBC six months after its Peacock debut, bringing it to a new audience and making NBC a sales channel to encourage viewers to sign up for Peacock, he said. Strauss said the audiences on broadcast, cable and streaming overlap less than people think, and the goal is to migrate viewers across the portfolio.
Analysis
Why This Matters
- The planned spinoff will separate NBCUniversal from Comcast, reshaping one of the largest media companies and changing how its sports rights, streaming service and broadcast network are managed.
- Peacock's first profitable year offers a test of whether live sports can make streaming businesses sustainable, a question facing the whole industry.
- How NBCU manages the shift between broadcast and streaming will affect how viewers watch major events like the Olympics and the NFL.
Background
NBCUniversal is a media conglomerate owned by Comcast, comprising the NBC broadcast network, the Peacock streaming service, NBC Sports, NBC News, Telemundo, Universal Pictures and theme parks. Comcast previously spun off most of its cable channels into Versant, and now plans to spin off NBCUniversal entirely, with Sky moving into the new company. Peacock, launched six years ago, has become profitable this year, though it remains much smaller than Netflix.
What to Watch
- The completion of the NBCUniversal spinoff from Comcast and Strauss's claim that it will let the company move faster.
- Whether Peacock's profitability continues as the company experiments with moving streaming originals to broadcast.
- Ratings for NBC's live sports portfolio, including Sunday Night Football and the Olympics, as the combined broadcast-streaming strategy is tested.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedNBCUniversal is leaning on live sports as a strategic asset.The Verge: “One of them is live sports and live events. That’s always been a part of NBCUniversal that we’re really known for. ... that’s a strategic asset when we’re partnering with the leagues”
- SupportedPeacock became profitable for the first time this year.The Verge: “it’s only just this year that Peacock became an actual profitable business at all”
- SupportedComcast is spinning off NBCUniversal into a standalone company.The Verge: “And now, Comcast is spinning off the NBCU business entirely into a whole new standalone company.”
- SupportedStrauss says a standalone NBCUniversal will be able to move faster and make clearer capital-allocation decisions.The Verge: “if we’re a separate company, it’s going to allow us to move faster. It’s going to let us have more clarity around where we want to make capital allocations and decisions.”
- SupportedStrauss says NBC’s broadcast reach has helped grow Peacock.The Verge: “Given the reach of NBC, it’s been incredibly strategic in growing Peacock”
- SupportedStrauss says the company is not trying to put everything exclusively on streaming.The Verge: “We believe in broadcast. We believe in broad reach. We’re not trying to put everything exclusively on a streaming platform.”
- Supported“Legendary February” spanned 17 days and reached more than 225 million viewers.The Verge: “That’s when we had the Super Bowl, the Milan Cortina Olympics, and the NBA All-Star Game. In 17 days, we reached over 225 million viewers.”
- SupportedAll Milan Cortina Winter Olympics events were available to stream live on Peacock.The Verge: “When you make it all available live, we put it all on Peacock.”
- SupportedAbout 25 million viewers watched the Winter Olympics, about 96 percent higher than Beijing.The Verge: “About 25 million viewers were tuning in to watch the Milan Cortina Olympics, which was about 96 or 97 percent higher than Beijing.”
- SupportedThe Winter Olympics had double the digital minutes of every previous Winter Olympics combined.The Verge: “On the digital side, it was double the digital minutes of every other Winter Olympics combined.”
- SupportedThe Winter Olympics doubled advertising revenue.The Verge: “We also doubled the advertising revenue.”
- SupportedStrauss floated premiering The Paper on NBC six months after its Peacock debut.The Verge: “What we’re starting to experiment with is, well, what if we premiere The Paper on Peacock but then introduce it onto NBC six months later?”