M+E Connections

Although paid subscribers for Comcast’s Peacock streaming service was relatively flat at 13 million, the company was able to report strong results for its second quarter (ended June 30), driven in part by significant growth in its theatrical film business.

The company also had its work on the Peacock front cut out for it in Q2 because it followed a very strong Q1 that was driven by a variety of in-demand titles.

“NBCU Media remains a very healthy business” for Comcast, according to Brian Roberts, CEO and chairman.

“We just completed the highest-grossing upfront in our history, a testament to our content and a superb team and the unique data and technology innovation we delivered through one platform,” he told analysts July 28, during an earnings call.

“This year, we secured more than $7 billion in commitments including $1 billion at Peacock, double what we did in the 2021-2022 season, along with strong pricing,” he said.

In Comcast’s studios business, its success with the films Jurassic World: Dominion, Minions: The Rise of Gru and Black Phone “demonstrates that great content attracts massive audiences,” he told analysts.

Studios revenue, as a result, increased 33.3% from a year ago to $3 billion. Total Comcast Q2 revenue increased 5.1% from a year ago to $30 billion.

NBCUniversal revenue increased 19% to $9.4 billion, with earnings before interest, taxes, depreciation and amortization (EBITDA) increasing 19.5% to $1.9 billion, Comcast CFO Michael Cavanagh said on the call.

Media revenue grew 3.6% to $5.3 billion, “driven by Peacock, with revenue up $444 million, which is more than three and a half times higher compared to last year,” Cavanagh said.

“Distribution revenue increased 8.4%, reflecting growth at Peacock, driven by increases in paid subscribers compared to last year and growth at our networks as higher contractual rates were only partially offset by linear subscriber declines,” Cavanagh added.

Comcast, meanwhile, was “very pleased with our new film windowing,” including Premium Video on Demand (PVOD) and an “accelerated Pay 1 availability on Peacock, which have expanded the audience for our films and made our studio business even more valuable,” Roberts said.

“For Peacock, early access to premium Universal films is a proven driver of subscriber acquisition and engagement,” Roberts noted.

“As we discussed during our last call, Peacock had a very strong first quarter, driven by a variety of … programming including the Super Bowl and Olympics,” he said. “Given the normal ebbs and flows of our content slate, we were pleased to have stayed relatively flat for the second quarter at 27 million” monthly active accounts (MAAs) and 13 million paid subscribers in the U.S., “in line with our expectations, and we look forward to a very strong fall when next day broadcast becomes exclusively ours from Hulu and we’ll be able to take full advantage of our Pay 1 window with a number of big movies, like Jurassic and Minions.”

Comcast has also “continued to invest in strategically important growth opportunities,” he went on to say, including by enhancing its broadband network, scaling its Xfinity mobile service and launching Peacock, he went on to say. “With substantial cash flow generation and a strong foundation for innovation, Comcast is in a wonderful position,” he added.

During the Q&A with analysts, Jeff Shell, NBCUniversal CEO, said: “On Peacock, we had the benefit of studying the market before we came in and we think we picked the right business strategy, which is kind of an extension of our existing business, not a new business based on dual revenue stream of subscription and advertising. And I think everybody kind of moving in that direction is the validation of that business model.”