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Insight of the Day: Peacock Free Subscribers Make Up One Third of Users

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  This demonstrates how many users remain on outdated subscription plans.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.

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