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Back to Why Peacock is making a huge bet on YouTube, with Matt Strauss.

Why Is Peacock Partnering With YouTube?

Matt Strauss says YouTube TV has grown at a 26% to 27% compound annual growth rate over the past five years, while the pay TV ecosystem has declined at a 6% to 7% compound annual growth rate. YouTube TV is the fastest growing pay TV distributor, with over 10 million subscribers, and is likely to be the number one pay TV distributor in the next couple of years.

About 80% of Peacock subscribers are on the ad platform, and Peacock typically charges premium CPMs because it can super serve fandoms and franchises with its data. A YouTube relationship announced in summer adds a much deeper integration on data and with Freewheel, the programmatic advertising business. Peacock is almost indifferent about where somebody consumes the content. The bundle is going to drive incremental subscribers and value. An extended linear portfolio agreement with YouTube TV is going to provide stability and growth on the linear side of the portfolio, and deeper integration on data, analytics, and targeting is going to let Peacock monetize inventory.

Independence and a willingness to stay flexible are what put Peacock in a position to make the YouTube deal.

Grokipedia·YouTube

Transcript

Why Peacock is making a huge bet on YouTube ·

Decoder with Nilay Patel

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  1. What Is Versant, and Why Did Comcast Spin Off Its Cable Channels?Matt Strauss says NBCUniversal spun some cable assets into Versant last year because the channels that stayed worked better together.
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  3. Why Is Comcast Spinning NBCUniversal Off?Matt Strauss says the decision to spin NBCUniversal off from Comcast was made by Brian Roberts and Mike Cavanagh. He was not in the room.
  4. Why Does Peacock Still Share Sports With Broadcast?Matt Strauss says about 20% of television households in the country still use over-the-air antennas.
  5. Did Live Olympics on Peacock Hurt Primetime Ratings?Matt Strauss says putting every event live on Peacock did not pull viewers off NBC primetime.
  6. 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.
  7. How Does Peacock Afford Rising Sports Rights?Matt Strauss says Peacock handles rising league demands by looking across the entire portfolio and ecosystem.
  8. Why Does Peacock Put Love Island Clips on TikTok?Matt Strauss says a Love Island clip on TikTok is a win for Peacock because it grows share of audience and opens the sales funnel.
  9. Why Is Peacock Being Bundled Into YouTube Premium?Matt Strauss says NBCUniversal will launch a bundle next year that pairs the ad-supported tier of Peacock with a tier of YouTube Premium.
  10. Has Matt Strauss Talked With the Trump Administration About Broadcast?Nilay Patel asks how NBCUniversal is handling pressure on NBC News from the Trump administration and FCC Chairman Brendan Carr, including broadcast licenses…
  11. Is Peacock Profitable?Matt Strauss says Peacock was profitable in the third quarter, for the second quarter in a row.

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