• by Wayne Friedman , Staff Writer, November 4, 2024

Comcast Corp.'s NBCUniversal is considering the idea of finding "partners" for its financially struggling Peacock streaming service -- essentially looking to potentially merge with other premium streaming platforms, analysts say.

Although the streamer has had good news over the last several months -- with an exclusive NFL football playoff game last season and strong viewing and advertising interest in the Paris Olympics, which both pulled in new subscribers -- the services continue to post big losses.

While other streamers like Max and Disney+ are posting semi-regular profitability, Peacock is still losing big, with a net loss of over $400 million in the most recent quarter and $9 billion since its launch a few years ago.

Peacock may be looking to establish a partnership/merger with Warner Bros. Discovery's Max, which could be part of a bigger plan that could see WBD's and NBCU's linear TV networks merge.

Richard Greenfield, partner and media-technology analyst at LightShed Partners, says there are more than a few obstacles. 

One is that there is probably a 50% overlap between Peacock, Max, and Paramount+ streaming businesses in terms of subscribers.

That is a concern because it would be difficult to charge substantially more for any combined service -- a key goal of any partnership agreement between these major media companies.

Another key complication could be shared sports programming -- in particular sports rights -- which could affect NFL and NBA deals. "This adds complexity to how any streaming merger would be structured," Greenfield says.

Peacock and Paramount+ both have access to the NFL. Warner Bros. Discovery does not have the NFL for any of its platforms, but wants to find a way to renew a long-term NBA deal.

WBD's TNT was a long-time NBA TV network partner. It was recently shut out of the new multi-year league rights deals, and has filed a lawsuit with the league in an attempt to reverse this. 

New partners Amazon and NBC have now received NBA rights under the new contract, as well as returning ABC and ESPN. 

If that is not complicated enough, the promise of seeing Venu Sports  launch -- a joint venture of Disney, Fox and Warner Bros. Discovery for sports-focused linear TV programming -- is still in the balance from a regulatory and antitrust point of view.

This regulatory concern does not get easier if streaming services are now looking to combine, with sports programming a heavy component. 

Greenfield also senses that any merger deal in reality could mean less competition for programming for the big streamer,Netflix -- but not so much from a new and stronger competitor.

So Peacock has its work cut out if it wants to really fly and show its colors.