"NBCUniversal’s Streaming Strategy Raises Prospect of WarnerMedia Merger"

Shocker of all shockers, people want more than just reruns of The Office.

The launch of NBC’s Peacock is already causing concern and calls for a merger report The Information’s Jessica Toonkel and Tom Dotan.

The streaming app is the cornerstone of NBC’s future as it winds down cable channels and gradually shifts viewers to paying. However, it’s already becoming apparent that not enough people will be paying to keep it going.

NBCU has said that 33 million people have signed up to use Peacock, which launched last July, a couple of months after HBO Max. But data from an internal NBCU presentation viewed by The Information showed that Peacock recently had only 11.3 million “monthly active ad-supported accounts.” (Active accounts are households and can include multiple viewers). A Peacock spokesperson said the 11.3 million figure was low.

The data also suggests that Peacock’s priciest $9.99 tier that doesn’t carry ads only drew 4% of people signing up to use Peacock.

The story suggests Peacock’s all-in-one approach is showing signs of not working.

That reflects NBCU’s original strategy with Peacock, which was to treat it almost like a traditional TV network. In a strategy developed by Shell’s predecessor atop NBCU, Steve Burke, Peacock’s programming has a mix of news and sports as well as entertainment. Netflix, HBO Max and Disney+, in contrast, don’t carry news and sports. Even now, marketing for Peacock has emphasized the free tier rather than the expensive subscription offering.

Shell has long felt that NBCU should try and build the pricier subscription tier of Peacock’s business, say people familiar with his thinking. But to draw paying users, Peacock needs more original programs, where NBCU’s resources are limited, thanks to the impact of the pandemic and cord-cutting on its cable business.

The shift of shows and other “content” that would have once been under the Golf Channel banner began in earnest last week when Rory McIlroy’s Golfpass stuff and PointsBet second-screen gambling feeds were behind the Peacock Premium wall. I’m not clear if the Golfpass is totally separate or there are crossover elements and since Comcast will inevitably shift its course again soon, no need to dig deep.