Peacock is NBCUniversal’s streaming service under Comcast. It shined in Q2 2024, but a small drop in subscribers dampened the celebration. Peacock’s revenue soared by an amazing 28% to reach $1 billion. Its losses plummeted to $348 million from $651 million last year and from $639 million in Q1 2024. Despite this financial glow-up, the service ended June with 33 million paying subscribers. This is down from 33.5 million in March. But it is still a hefty leap from the 24 million in June 2023.
These financial feats were the best surge in adjusted EBITDA since Peacock’s grand debut in 2020. It was a year-over-year record. Comcast CFO Jason Armstrong had said 2023 was the peak of Peacock’s yearly losses. He said 2024 would bring big improvements.
The financial metrics were good. But the subscriber dip threw a wrench in the works. It highlighted the tough job of keeping and growing the user base.
Price Hikes and Industry Trends
Peacock recently dropped a bombshell. It announced price hikes for new users on July 18 and for existing users on August 17. This move echoes the industry’s trend. It might be the plot twist that affects subscriber loyalty and growth. The Paris Olympics start on July 26. Peacock is betting on a surge in viewers to steady or boost its subscriber count soon.
Comcast’s main cable and telecom business continued to lose subscribers. It lost 120,000 broadband users this quarter, up from 19,000 last year. Subscriber losses from video also narrowed. They fell from 543,000 to 419,000. This underscores the ongoing struggles in traditional cable.
Brian L. Roberts is Comcast Corporation’s Chairman and CEO. He boasted in the company’s news release, “Broadband ARPU jumped by 3.6%. We delivered 6% revenue growth in our internet and TV businesses. This pushed our Adjusted EBITDA margin to a record 41.9%. Peacock powered Media’s EBITDA growth. It had the best year-over-year improvement since its 2020 launch.”
NBCUniversal’s studios had a 27.0% revenue drop to $2.3 billion. Lower movie and content licensing sales caused the drop. Compared to last year’s blockbusters like “The Super Mario Bros. Movie” and “Fast X,” the decline was stark. The theme parks division wasn’t spared either, seeing a 10.6% revenue slide to under $2 billion.
Peacock is sharpening its financial edge. The slight subscriber dip underscores the fierce and shifting battleground of streaming. Keeping and growing its user base will be crucial for long-term success. This is true in a market where content and pricing are king.