NBCUniversal CEO Jeff Shell expressed enthusiasm about the company’s video distribution at Tuesday’s Credit Suisse investor conference. He boasted not only the success of ad-supported streaming service Peacock, but also that of NBC’s linear business, which he said is doing well despite general broadcast viewership declines.
But even with NBCUniversal’s offerings, along with the abundance of platforms on the market, Shell believes the streaming industry has yet to reach “peak content.”
“I think things will continue to fragment,” he said. “The reality is as long as you’re selling total audience and can make a margin on your content, I don’t think we’re remotely close to peak content in the industry.”
Shell added the key for maximizing content success is “finding the right distribution strategy.” He went on to say NBCUniversal is not only focused on making content, but also selling it to third-party distributors to ensure higher engagement rates.
Shell gave the example of NBC-owned series “Hacks,” a show NBCUniversal decided to stream on HBO Max.
“We didn’t feel that was right for our platform, it really belonged in a premium, non ad-supported platform,” he said. “So we sold it to HBO where it’s a hit.”
NBCUniversal has a unique position in the media industry, he continued, in that it’s got a variety of linear networks – with Peacock tethered to that linear environment.
“We clearly picked the right business model for Peacock,” he said, referring to how other distribution platforms are following suit with ad-supported streaming. Netflix, which has long maintained a strictly ad-free service, plans to introduce its first ad-supported tier by year-end.
Peacock brought in 4 million new subscribers in the first quarter, numbers driven by viewership during the Super Bowl and Winter Olympics, said Shell. He added Peacock retained most of those added subscribers in Q2, despite a lack of sports content and new original releases.
Sports is one of NBCUniversal’s main pillars of programming, Shell said. Peacock now offers simulcast NFL games, and NBC Sports recently inked a multiyear deal for Peacock to stream weekly Major League Baseball games. Plus, NBC has exclusive broadcast rights for the Olympic Games through 2032.
Shell then offered praise to NBC’s news division.
“We really have no competitors in the industry,” he said, referring to NBCUniversal’s “three-pronged approach” with MSNBC, CNBC and AVOD business NBC News Now. NBCU parent Comcast in March made some MSNBC shows available to stream on Peacock, only a few hours after they air on cable television.
Shell also remarked on the state of theatrical releases in relation to streaming. He thinks the movie business is in a better position post-pandemic, in that streamers are realizing that “movies drive platforms.”
“We’re having a robust licensing business for our movie content, which is making the whole business more profitable,” he said, adding the evolvement of theatrical windows has helped both streaming platforms and box offices.
Shell noted Disney recently announced the Marvel film “Dr. Strange in the Multiverse of Madness” will stream on Disney+ after a 47-day theatrical window. Similarly, Paramount has said the window for “Top Gun: Maverick” will be longer than the company’s standard 45-day window.
He highlighted NBCUniversal’s premium video-on-demand window release, which boasts a 17-day release window – a strategy the company unveiled back in 2020.
“The more screens you put us on in theatrical releases, the bigger share you get of the digital window,” Shell said. “Which I think is a great model for us.”