Why Does Peacock Look Like Broadcast Television?

Matt Strauss says Peacock was built from the start as an extension of the broadcast business, on the bet that streaming would look like television. 80% of Peacock subscribers are on the ad tier, which he thinks is a higher advertising mix than almost any other streaming service.

The wider market had chased ad-free binge viewing, scripted dramas, and gross subscribers at any cost. Peacock went toward live events, sports, movies, scripted series, unscripted shows, and news, expecting advertisers to follow the viewers. Decisions made six years ago put live at the center of the platform. An exclusive NFL playoff game, the Olympics, or the NBA tip-off can scale without pixelation, buffering, long latency, or high app crashes because the platform was hardened for live. NBC and Peacock are sold as one, which is how the business tries to punch above its weight on advertising.

About 30% of advertising revenue, by his estimate, came from sports and streaming six years ago. The share is now probably closer to 60%, rolled into the broader portfolio.