The only saving grace for Comcast’s Peacock streaming service, which will lose $2.8 billion this year, is that it now has 30 million paying customers.
At a UBS investor conference on Monday, Comcast President Mike Cavanagh confirmed the amount that the cable giant had stated in October it projected to lose. He also restated the company’s view that 2023 will be a “peak” year for losses and that 2024 will see improvements.
Surprisingly, given that Comcast anticipated Peacock to lose $3 billion before interest, taxes, depreciation, and amortization for the year, that number is good news. With fewer losses and an increase in subscribers of two million since revealing its third-quarter statistics in October, the service is well-positioned for the upcoming year.
Comcast’s largest streaming wager is Peacock, particularly with Walt Disney acquiring its 33% share in Hulu.
According to Variety, Cavanagh stated, “We disclose what we ‘lose’ in Peacock for clarity, and it’s going to peak this year at $2.8 billion of losses.” “But don’t overlook the other argument: how would everything seem if we weren’t attempting to undermine Peacock? If you weren’t attempting to envision the future of your potent platforms, you would be asking a different set of questions, such as where are the linear businesses headed?
According to Variety, Cavanagh also stated that the bar is high for M&A opportunities, implying that Comcast will focus on expanding its own companies rather than acquiring any.
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