NBCU’s Peacock Marks Media’s Latest Try to Connect Consumers, Commercials

Variety | 1/17/2020 | Brian Steinberg
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In an era when consumers feel more empowered to avoid TV commercials, NBCUniversal is the latest media company to try to get them to bring ads back into their TV lives.

One of the key selling points of big streaming-video services like Netflix and Disney Plus is that subscribers don’t have to endure the commercial breaks and repeated pitches for Downy and Allstate that are so much a part of the traditional TV experience. But NBCU thinks commercial culture still has its place.

Peacock - Commercials - NBCU - Service - Version

Peacock is designed to carry commercials. NBCU said it will make the service available in a free ad-supported version as well as in a “premium” variety – also ad supported – that is bundled for Comcast and Cox subscribers or for $4.99 per month for other customers.

“With more and more streaming choices and consumers feeling subscription fatigue, the $5 price point for a low-ad tier service is a viable option for those who are frustrated by excessive ads on other platforms and who are not able to afford yet another streaming service above the $10 per month price point,” says Anne Hunter, executive vicde president of strategy and growth at Kantar, a media-research company.

NBCU - Peacock - Streaming - Service - Thursday

When NBCU unveiled its new Peacock streaming service Thursday night, the company played a promotional piece showing all the standout moments of a young woman’s life, some of which involved watching video entertainment with friends and family. “The best things in life are free,” the video told the assemblage of analysts, executives and journalists who gathered to learn about the product.

The concept was partially conceived by Linda Yaccarino, chairman of the company’s ad sales and partnerships business, and NBCU is one of many entities working to put forward the notion that ads are good for TV viewers, not bad.

Time - Business - Viewers

In a different time in the business, viewers...
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