Movies

Can the Paris Summer Olympics give Peacock the streaming boost it needs?

BBG News

As a long-time movie buff and media industry observer, I have seen my fair share of streaming services come and go, each promising to revolutionize the way we consume content. But few have faced the public backlash that NBCUniversal’s Peacock did during the 2021 Tokyo Olympics. The lackluster programming and difficulty in finding events left many consumers feeling let down.

In 2020, NBCUniversal introduced Peacock, its new streaming platform, with the expectation that the Summer Olympics would significantly increase its popularity.

The games didn’t go as planned during the 2021 Tokyo Olympics, with consumers voicing their disappointment on social media platforms. The streaming service’s offerings fell short in terms of quality and accessibility, according to numerous user complaints.

Mark Lazarus, Chairman of NBCUniversal Media Group, characterized the response as a “significant digital retort.”

In a recent interview, Lazarus stated, “We called Tokyo the ‘streaming home of the Olympics,’ but unfortunately, we didn’t fully live up to that promise in reality. We didn’t manage to stream all the events and failed to deliver on what we had advertised.”

Based on my personal experience working in the media industry and following the Olympics coverage for years, I can confidently say that this time around, NBC is making a bold move by making Peacock the central platform for their live Olympics coverage. This isn’t just a side project or an addition to their existing offerings; it’s the main event. The Paris Summer Olympics, which begin on Friday and last for 17 thrilling days, will be the hub of NBC’s attention and resources on Peacock. As someone who’s always been fascinated by the Olympics and its ability to bring people together from around the world, I’m excited to see how this new approach will enhance my viewing experience.

At the upcoming event, Peacock is set to broadcast over 5,000 hours of live coverage featuring all 329 medal contests. For those who may miss an event in real-time, on-demand replays will be accessible, with many events staying available until the end of the year.

With “multi-cast,” the platform enables viewers to watch multiple live events at once on their screens. Peacock users can easily navigate to the desired event using a designated area on the platform as their guide.

As a movie buff who’s always excited about the Olympics, I can’t contain my enthusiasm when I tell you this: for the very first time ever, we’ll have a single go-to platform that brings together every Olympic element known to history! Isn’t it amazing, folks? I’m Kelly Campbell, the president of Peacock and direct-to-consumer, and I’m thrilled beyond belief to be part of making this dream come true.

Investors keeping an eye on Comcast Corp., the parent company of NBCUniversal, will be closely monitoring developments. The expense of introducing Peacock and transforming it into a significant rival to Netflix, Amazon Prime Video, and other streaming services has placed a strain on the firm’s financial results.

The company reported a loss of $348 million for the second quarter in their latest financial statement. This is an improvement from the $651 million loss experienced in the same period last year. However, with 33 million subscribers, the service is lagging behind competitors such as Warner Bros. Discovery’s Max and Paramount Global’s Paramount+. The quarter saw a decrease of approximately 500,000 paying customers.

Anticipation for an impressive showing at the Paris Summer Games is believed to boost subscription numbers significantly for the monthly service, priced at $7.99.

According to MoffetNathanson’s analysis, not all of the subscribers gained during the Paris Olympics will continue their Peacock subscription once the games are over. However, they are expected to retain some of those new subscribers following the “relaunch moment” of the Paris Summer Games for Peacock.

During the Olympics, investors are focused on Peacock, but NBC will broadcast live events on its network and USA cable channel during the day. However, prime time hours on NBC, which generate over $1 billion in advertising revenue for the Summer Games, will feature analysis and highlights rather than live coverage, as many viewers are already aware of the results due to the time difference.

“According to Lazarus, prime time represents the cream of the crop and offers increased enjoyment. People prefer to watch shows live, but the option to catch up later on NBC or Peacock caters to those with daytime constraints. It’s hard to imagine someone in today’s world being unaware of the final outcome.”

NBC, with its history starting from the first radio broadcast of the Olympics in 1936, is known for responding to evolving viewer preferences. The Olympic Games have always served as a platform for innovation, according to Campbell.

During the Summer Olympics in Barcelona, 1992, the network transmitted only 171 hours of content, a time when viewers had more channel choices than ever before due to cable television. To adapt to this new TV environment and earn money for expensive broadcasting rights, the network introduced a pay-per-view cable offer called Olympics Triplecast, allowing consumers to access extra Olympic coverage.

Despite the expensive service not living up to expectations, NBC’s faith in viewers desiring additional ways to experience the Olympics proved correct. In the ensuing years, NBC effectively utilized its cable networks and digital resources to deliver extended Olympic coverage.

NBCUniversal has the flexibility to broaden its Olympic coverage to include new technologies since their rights agreement encompasses every video technology developed throughout the contract period, which lasts until 2032.

According to Lee Berke, the president of LHB Sports, Entertainment & Media, NBCUniversal is favorably situated for the upcoming Paris events since audiences have grown more accustomed to streaming live sports, following the successful presentation of an NFL playoff game on Peacock in January that attracted impressive viewership numbers.

“Berke commented that the NFL game significantly boosted the number of viewers on Peacock. Peacock has evolved considerably since then and is now more prepared to serve as a sports platform. The Olympics presents an ideal chance for them to showcase this.”

NBCUniversal is benefitting from the Paris Summer Games taking place at a convenient time. Following their successful acquisition of NBA rights, basketball will once again air on NBC and be available on Peacock starting from the 2025-26 season. Prepare to hear the iconic “Roundball Rock” theme in promotions for exclusive NBA games on Peacock as part of the $2.5-billion annual deal announced recently.

At the Olympics, Peacock’s broadcast will take note of the generational gap that has emerged in television viewing habits. Younger audiences have shifted towards streaming services, while the traditional TV audience is aging. Merely repeating the coverage on the TV channel won’t be sufficient to retain the interest of younger viewers.

“They’re looking for more than a one-size-fits-all viewing experience,” Campbell said.

In order to connect with online audiences, Peacock is providing a unique perspective on the Summer Games. The well-known podcast host Alex Cooper, from “Call Her Daddy,” will conduct personal interviews with Olympic athletes. Additionally, she will oversee live watch parties where she responds in real time to comments made by Peacock viewers on social media.

With Peacock, sign up for a customized daily Olympics summary. You’ll get personally curated 10-minute updates, delivered via an AI voice modeled after the iconic sportscaster Al Michaels. Each day, these recaps will be crafted from hundreds of NBC Sports-generated clips, showcasing the previous day’s highlights and offering a sneak peek into NBC’s prime time lineup.

Peacock, the streaming platform, has recruited comedian Kevin Hart and “Saturday Night Live” actor Kenan Thompson for an entertaining eight-part series reimagining Olympic highlights with a lighter, more humorous perspective.

The platform draws inspiration from the NFL for its “Gold Zone” feature. This section is manned by Andrew Siciliano, Akbar Gbajabiamila, and Scott Hanson, who are well-known hosts of the NFL’s “RedZone.” They deliver live coverage filled with excitement as viewers witness crucial moments and medal-deciding events. For those seeking more than a brief glimpse, Peacock offers instant access to the live feed or saves it for later viewing.

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2024-07-26 14:24

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