Considering the evolution of the media industry, January 13, 2024 could be considered a milestone in the history of the industry. On that day, NBC broadcast an exclusive NFL playoff game on Peacock, in which the Miami Dolphins hosted the Kansas City Chiefs.
The decision was initially met with skepticism and criticism, if not outright outrage. How could a media company put something as sacred as an NFL playoff game behind a paywall and restrict it to a streaming platform that is not easily accessible to everyone?
But Over time, the decision for Comcast and NBC seems to have paid off. The game achieved enormous ratings, and the whole intention was to get subscribers to stick around to explore content both in and outside of sports and maintain their monthly subscription fee. In that respect, it was a successful mission.
And according to CNBC sports media reporter Alex Sherman, who spoke with NBC Sports president Rick Cordella, it was a pivotal moment that inspired NBC to pursue a massive NBA rights deal in which Peacock will once again play a major role.
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Market research firm Antenna estimates that Peacock gained three million new subscribers by acquiring the rights to that one NFL game, which cost $110 million. More than 70 percent of those subscribers stayed with Peacock about two months later, Antenna said in March.
That gave Cordella confidence that NBA fans would stick with Peacock after the season ended. But it wasn’t just the low churn that convinced him of the value of popular sports. It was what new subscribers saw after they signed up.
“Our highest video-on-demand usage was the week after the Wild Card game,” Cordella said in an interview. “The churn rates among those new subscribers were lower than average. Sports fans are not monolithic. They get an entire household to watch other entertainment in addition to what NBCU offers.”
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“The NBA is a must-have for sports fans,” Cordella said. “We need to build Peacock for the future. Exclusive NBA games are really important to that mission.”
Peacock can make a serious case for being the best value sports streamer on the market thanks to NBC’s wide range of sports and its focus on streaming. That was evident in the platform’s recent coverage of the 2024 Paris Olympics, which was perhaps the best example of what the streaming age can do for sports fans thanks to live coverage of every event and the Gold Zone. Add in the odd NFL game, the Big Ten, the Premier League, and the entire WWE library, and it’s a great lineup.
The NBA will only increase that value with a ton of regular season and postseason content. And based on Cordella’s comments, it’s probably safe to assume it all started in January. Without the success of Peacock’s NFL playoff game, NBC might not have jumped so hard on the billion-dollar NBA deal because they would have seen that sports fans weren’t ready. However, as 2024 has shown, more and more events are being streamed, and the NBA will have a strong presence on Amazon and Peacock; perhaps it already is.
(CNBC)
