The Problem:
Peacock, the NBCUniversal streaming service, launched with a free advertising-based tier. This tier is no longer available for new users, but many still access it.
Peacock is struggling with profitability, losing billions since its launch.
Converting the remaining free users is a potential strategy to increase revenue. However, this is risky for Peacock.
Key Points:
One-third of Peacock users are still on the free tier. This demonstrates how many users remain on outdated subscription plans.
Converting free to paid is risky. Peacock has less viewership than Netflix and fewer hit original shows, meaning free-tier users might simply cancel Peacock instead of upgrading to a paid plan.
Even paid Peacock users have low usage. Only 24% of premium subscribers use the service daily, on par with other legacy media streamers.
Main Takeaway
Peacock faces a significant challenge in becoming profitable. It has a large proportion of inactive free-tier users who might not be willing to switch to paid plans. This could hinder its path to increasing revenue, even if the free tier was removed completely.
