• by Wayne Friedman , December 9, 2019

NBCUniversal’s forthcoming Peacock streaming service is poised to become profitable somewhat faster than its competitors, according to a senior Comcast executive.

Speaking at UBS Media Conference, Michael Cavanagh, senior executive vp/chief financial officer of Comcast Corp., says Peacock intends to invest over the first two years in operation “probably about $2 billion of aggregate investment.... achieving break even by year five.”

Cavanagh did not elaborate as to whether that spending would be from TV/movie content production, marketing, incremental content investment, or otherwise.

He added: “The arc brings it to break-even profitability in five years' time.. which I think is a lower cumulative loss or investment than what you otherwise might see in other places.”

For Peacock -- perhaps more so than other new premium TV services -- advertising will be a key financial ingredient.

“Obviously that's with the opportunity to rely on advertising, ramp through distribution partnerships and reach and it being free to quality product, free to the customer.”  

He added that the service would be “free in certain circumstances.” NBCU executives have previously said pay-TV and Comcast broadband customers may get free access to Peacock.

Of the major new premium services that have just started -- or will be starting next year -- only AT&T has hinted there will be an advertising option for its HBO Max.