Comcast's New Streaming Service: Impressive Launch, Limited Impact

2/17/20

While the broad strokes of Comcast’s (CMCSA) new streaming service have been known for a while now, there was still some variation in the rumors that left genuine questions about the details of Peacock going into the official announcement. Almost without exception, everything that we didn’t know before announcement day and found out was helpful to Peacock’s cause, improving my outlook on the service and its potential to contribute to Comcast’s bottom line. However, I have two remaining concerns that somewhat balance out my satisfaction with Comcast’s announcement. For now, I remain on the sidelines of Comcast stock.

Heading Into the Event

As everyone and their mother started launching streaming services, there was little doubt that Comcast’s NBCUniversal also would be launching a new streaming service, which we’ve been told from the beginning would be free and ad-supported to those who have a validated pay-TV subscription. At one point, for those who don’t or those who wanted to eliminate ads, the cost was supposed to be $12 per month. Even before the official announcement, Disney’s (DIS) dramatically lower price for its service was widely seen to have put the kibosh on those plans.

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