Peacock Business Model & Revenue Sources: A Strategic Guide for Executives

Gone are the days when we used to see our favorite shows and movies on cable TV. streaming services are now dominating today’s market. If you look around, the majority of Gen Z and millennials now have some other OTT subscription(audio or video). Research says there are currently around 1.8 billion video streaming service subscriptions worldwide. Streaming services are in high demand because they allow users to access their favorite serials, shows, and movies from their mobile devices or laptops from anywhere.

If you live in the US, Peacock TV might have caught your attention because it is launched in 2020 and is currently the highest-trending streaming service right now, with 36 million subscribers in just a short time. The reason is that US citizens can now access famous networks like NBC, Universal, Bravo, and more from their comfort.

This article discusses about the business model of the Peacock streaming service, its growth potential, and other useful insights. Whether you are a consumer, investor, or business professional, reading this article will help you to understand the business logic behind the streaming service and revenue.

Let's first read the history of Peacock streaming to understand everything in flow!

The History of Peacock: From Concept to Market

Peacock TV is an American video streaming service launched on 15 July 2020, owned by NBC Universal (a Comcast subsidiary).

It started its entry in the market by offering free content to users for a limited period of time, which was then discontinued in January 2023. Currently, it has two subscription models: premium at $ 7.99 per month and premium plus at $13.99 per month.

• Americans spend 1.4% of their total streaming time on Peacock.
• If we look at the subscriber lists of Peacock, it's constantly going upward.
• In 2021, the Peacock subscribers list grew from 4 to 9 million.
• In 2022, subscribers grew from 13 million to 16 million.
• In 2023, subscribers' numbers grew from 22->24->28-> to 31 million.
• Lastly, by 2025, it reached up to 36 million subscribers, and the numbers will still grow in upcoming years.

Currently, Netflix has over 200 million subscribers, and a survey says that the subscription list of Netflix will rise up to 251 million, Amazon’s will be 250 million, and Disney+ will be 207 million, and there is no sign of stopping this.

That day is no longer far when Peacock will compete with Netflix, Hulu, HBO Max, and other streaming services. In fact, a survey has found that Peacock is the 7th most popular streaming platform currently.

Business Model of Peacock

Previously, when the Peacock was newly launched, they had a freemium version with limited access to content. This attracted a wide user base to join Peacock, and the exclusive content library attracted premium subscribers.

Currently, it offers two subscription plans, both are premium, but they have their own benefits, like with ads and without ads.

• Premium is priced at $7.99 per month with ads and $79.99 per year.
• Premium Plus is $13.99 per month without ads and $139.99 for a year.

Buying any of Peacock‘s subscriptions will offer you exclusive NBC Universal content, original series, WWE networks, live sports matches, and many exciting content.

You can watch the following things on the Peacock app.

• On-Demand Content: Classic NBC shows, Universal movies, and Peacock Originals.
• Live TV & Sports: Premier League, NFL, WWE, Olympics, News Streams.
• Exclusive Content: Peacock Originals like Poker Face, Bel-Air, and Dr. Death, and many other exclusive originals and partnerships to attract and retain subscribers.

Plus, if you own an Instacart membership, you get free Peacock access at zero cost (with ads). Peacock is supported on most of TVs, iOS, and Android devices. It also supports offline downloads- up to 25 downloads for premium plus subscribers.

Note: If you log out of your Peacock account from your device, you might lose your downloads from that device.

Its unique business model attracted a huge audience in the short time of 4 years. The reason people love using the Peacock app is that it analyzes the viewing habits of users and suggests content based on that to offer a personalized experience.

How does Peacock Make Money?

Peacock video streaming service makes money through advertising and subscription models. It includes ad-free and without ads in the subscription plans itself so user who are fine with watching ads, choose with ad plan as it is affordable than premium plus.

#1. Advertising Revenue

Targeted Advertising Model with Personalized Ads

Let's get into the details of peacock advertising to understand how ads help peacock to generate revenue.

Being NBC Universal’s premium streaming platform, it allows brands to place their ads on their OTT platform. It supports video ads, screensaver ads, homescreen banner ads, marque ads, and binge ads. Peacock also uses real-time analytics and advanced targeting to reach a wider audience and optimize ads to make them more effective for the audience.

NBCUniversal’s Ad Partnerships and Sponsorships

Ad partnerships and sponsorships are the smart strategies that Peacock uses. It only does partnerships with big brands like Apple, Toyota, Coca-Cola, and more. These companies pay millions to run ads during popular shows like the Olympics, WWE, live sports, and exclusive content. Hence, by this advertising, the companies can reach a wider audience as the huge crowd will be watching popular shows like sports matches or any original shows.

#2. Content Licensing & Distribution

Peacock sells their original and other exclusive content to competitors like Amazon, Hulu, Netflix, and other streaming services. This allows viewers from different countries and regions to access the NBC exclusive content and allows Peacock to earn some part of the revenue from the audience who don't directly subscribe to Peacock but just access their content.

#3. Partnerships & Bundled Deals

Peacock has been implementing certain smart strategies to be successful in such a short period of time. Its partnership with Xfinity, select Cox customers, and telecom providers is a great way to grow its audience while still making money.

It's not actually free; it's a give-and-take relation. The partnership usually includes fees per subscriber. Internet and telecom providers gain a more valuable audience by partnering with Peacock.

What's Next? Peacock’s Future Growth Strategies & Revenue Opportunities

Research has found that the video streaming market will reach up to $2.49 trillion by 2032. Today, there are multiple players in the streaming services hence, it gets difficult to sustain a loyal user base for a longer time. Peacock is constantly evolving and using useful growth strategies to perform better than others. Below are some of the future strategies.

#1. Expanding Original Content & Exclusive Shows

Currently, Peacock includes NBC Universal's content library, but in the future, it's planning to add more original series that are rarely available online. This will attract a curious audience that will stay with Peacock for a long time.

#2. International Expansion: Possible Global Market Entry in Phases

Currently, Peacock is only available in the US, but it is slowly thinking about entering the international market and reaching a wider audience from other regions.

#3. Advanced AI & Personalization Features for Better User Engagement

If you use Netflix, Disney Hotstar, or any streaming platform, you might have seen it suggests you show and series based on the things you watch; that's AI. It analyzes your watching patterns and understands your choices to suggest movies and shows based on your taste.

Peacock is also currently working on a personalization and recommendation feature.

#4. More Live Event Partnerships

Live content is rare and special for audiences because it is rarely available and less accessible. Peacock is planning to partner with more live events(e.g., sports leagues, entertainment deals) to create a high demand and attract die-hard fans as subscribers.

#5. Possible Integration with Comcast’s Other Services for Enhanced Offerings

Comcast already owns Peacock, so there are multiple possibilities of integrations to boost subscriptions without spending on extra marketing.

Lessons for Executives

Business leaders can learn so many things from the peacock. Below are some useful lessons for the media and entertainment industry.

#1. Balancing Free and Paid Models

Peacock first started with offering a free service up to a certain time, and that was a smart move at the beginning.

People love free stuff. Peacock attracted millions of viewers that converted into subscribers later on, even after the launch of the premium model.

#2. Leveraging Content and Partnerships

Obviously content is king, but partnerships are queen. By partnering with big brands and streaming platforms such as Netflix and Hulu, Peacock monetized its business in multiple ways.

Hence, if you want to grow your business and reach a huge audience base in a shorter time, then partner with big brands and don't depend on one revenue stream. Look for multiple methods on how you can monetize your business.

#3. Investing in Technology and User Experience

Peacock has a well-organized content library that helps users to easily find their desired content easily. Also, it has user-friendly search filters that allow users to easily navigate the app from any device.

Also, ads in Peacock are less annoying because it allow users to binge ads or pause ads. 

Case Study: Peacock’s Success Story

Peacock has come a long way since its launch in 2020. It has steadily and smartly grown and acquired a reputed place in today’s competitive market.

Let's check the peacock’s success story.

In 2020, it was officially launched with a free and ad-supported tier. While other streaming service providers offered content on a subscription basis. Peacock offered free access to content to users but earned from ads at the starting phase.

In 2021, it invested in live sports events and other exclusive content like WWE, the English Premier League, the Olympics, and the NFL’s Sunday Night Football. This caught the attention of millions of sports fans.

In 2022, Peacock invested in strategic partnerships with Comcast, Cox, and Sky. This offered free access to Peacock to users and boosted the user base eventually.

In 2023, Peacock invested into original shows like Continental, the poker, and more. By 2024 and 2025, the number of Peacock subscribers increased to 36 million and revenue up to 3.6$ billion.

Peacock offers more than 50 live channels and 81,000 hours of on-demand content, hence, it has attracted a huge audience base of all ages. Peacock holds a 1% share of the paid streaming market in the US.

It is the 7th most famous streaming platform after Paramount Plus and Apple TV.

Though there were ups and downs in this journey but with patience and smart strategy, Peacock made a remarkable position in the streaming market.

The Paris 2024 Olympics helped increase its viewership by 33%. Plus, it is expected to generate $2.7 billion in ad revenue by 2026.

Conclusion

Hope you found this blog interesting and unique to learn about the peacock streaming service and understand how it differs from other OTT markets. It has a viewer base of 76 million, and the numbers will keep on increasing as Peacock adds more originals and exclusive content.

It has become one of the most loved streaming services in the US and is also planning to explore other English-speaking countries.

If you want to take a step into the streaming industry and want to develop a streaming app, reach Expert App Devs today. We are a well-known App development company in USA with more than 12 years in the mobile app development industry. Our team has completed over 2500 app projects successfully. Book a consultation call to discuss more how our expert team can help you.

Frequently Asked Questions

#1. What is a Peacock?

Peacock is an OTT platform or streaming service based in the US owned by NBC and Comcast. It offers a variety of exclusive movies, TV shows, live sports, and much more.

#2. Is Peacock available outside the U.S.?

No, Peacock is not available outside the US. It can be accessed across US territories and in many states. But you can still try to access Peacock by using a VPN by selecting your country location to the US.

#3. Does Peacock offer live TV and news?

Yes, Peacock provides live TV and news with a huge selection of sports, originals, on-demand, and exclusive content.

#4. How does Peacock Benefit from its Comcast Ownership?

Comcast helps Peacock in many ways.

• The first thing is that Peacock can also attract the user base of Comcast.
• Peacock got partnered with cable packages and other partners like Xfinity and Cox due to Comcast's ownership.
• It got access to a huge and exclusive content library.

#5. How Does Peacock’s Business Model Compare to Netflix or Disney+?

Peacock’s business model is different from Netflix and Disney+ because it follows a hybrid approach and a major part of its revenue comes from advertising. It has with ad and ad-free premium plans. Peacock TV offers a mix of NBC library content, originals, live news, TV, sports, and more. While Netflix and Disney have paid subscription plans and offer original series and family entertainment.

#6. Can I Cancel My Peacock Subscription Anytime?

Yes, you can cancel your Peacock app subscription whenever you want from the account section->plans and payment-> choose plan->confirm cancellation.

#7. How Do I Differentiate My App in a Crowded Streaming Market?

Differentiating your app in today’s crowded market is important. Here is how you can do it.

• Understand your target audience and add things that your competitors don't have
• Focus on creating unique user experiences like personalized recommendations, unique menus, and color schemes. Add uniqueness that makes your app unique from others
• Use data analytics to study competitors better and implement useful things
• Select specific niche, genre, or content categories
• Add technologies like AR.VR, data personalization, etc.

#8. What are the Key Components of a Successful Streaming App?

Below are the key components of a good streaming app.

• Content Quality
• Target audience
• Streaming Stability with minimal buffer
• User Interface Design and Navigation
• Monetization Model
• Personalized Recommendations
• Offline Viewing Capability
• Social Sharing Features
• Security
• Device Compatibility
• Customer Support 

#9. What are the Risks of Relying on AD-Based Revenue?

Advertising is definitely a profitable addition but it also has some risks. Below are some risks related to ad-based revenue.

• The ad budget may fluctuate in case there are market changes. It also affects user engagement
• Less control over ad-content
• Users who use Ad-blocking technology in their system might block your ad.
• Audience focus shifts over time and demand.

#10. What Technical Infrastructure is Needed to Build a Streaming App?

Firstly, you will need to decide on a programming language, framework, design, tools, etc. Other than this, deciding on key components like suitable streaming protocol, CDN(content delivery network), media server, and video storage is crucial. Other than this, you must use the correct database, cloud platform, back-end, front-end, and other things to make a successful streaming app.

#11. What are the Ongoing Operational Costs?

Server hosting, CDN fees, content licensing, app maintenance, support service, marketing campaigns, ad running, and third-party APIs add up to your operational cost of streaming apps.

This price may go up and down according to the number of users, video quality, content library size, and platform.

#12. What Legal Considerations Should We Keep in Mind?

Legal considerations are an important part of the streaming industry. If not followed, it can result in shutting down the business. Below are legal considerations related to streaming apps.

• Get proper licensing and copyright
• Don't copy music or images from other streaming partners
• Consider privacy laws according to age
• Data protection for audience and users
• Be transparent to viewers about sponsorship and ad placement
• Implement digital rights management
• If you operate globally, consider regional regulations.

Vaibhav Patel

Project Manager

Vaibhav Patel is a project manager with expertise in web development, API development, Laravel/PHP/WordPress/Node/Perl development, database management, server management (AWS/ Microsoft Azure), mobile app development and Agile practitioner.