Will you be watching the NFL playoff game on Peacock?

kenneycb said:

Cool, I’m wrong then. Appreciate the context. Figure you know much better than most of us so thanks for setting my assumption driven analysis straight.

That said, a cable company with a streaming service is dumb and diametrically opposite strategies. So Comcast is still stupid IMO.

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Another perspective on Comcast from someone who ‘cut the cord’ just this week and yet stayed with Comcast (1gig for two work-from-home adults with two teens plus I ‘bundled’ a streaming package where I have access to some streaming services). They are trying to adapt to the times and stay relevant.

My work is tangential to the space, and some of the other cable companies maybe, but these are not ridiculous people at Comcast running the multi billion dollar organization, I assure you.

This is a super long way around back to Peakcock: I was sure my answer was no I won’t sign and watch. Then I signed up for the Comcast streaming channel service which includes Peakcock…so I tell me wife about it (I was excited by soccer and I have become obsessed with the Tour de France coverage despite never having attended a bike race) and she says “don’t worry we already pay for that…I get the skiing plus hallmark pus bravo.”

So there you go, Peacock is in for life at the sezwho house apparently and I’ll certainly watch any playoff game(s).

I understand the strategy, I just find it dumb. The point of cable is to get as many customers to watch everything you offer to distribute the fixed costs. Peacock siphons off content and makes the cable bundle, of which one of the primary use cases is sports, less attractive and valuable. I don’t think the bundle is going away so they’re (1) making their golden goose less valuable while (2) losing a ton of money in standing Peacock up. They should be playing Switzerland IMO and wait for the inevitable collapse of all the streamers because most don’t have a compelling value prop vs Netflix and are losing a ton of money, which isn’t as tenable when interest rates are non-zero. Peacock won a bunch of subs but their monetization is still in phase 1 of the Underpants Gnomes business plan.

kenneycb said:

I understand the strategy, I just find it dumb. The point of cable is to get as many customers to watch everything you offer to distribute the fixed costs. Peacock siphons off content and makes the cable bundle, of which one of the primary use cases is sports, less attractive and valuable. I don’t think the bundle is going away so they’re (1) making their golden goose less valuable while (2) losing a ton of money in standing Peacock up. They should be playing Switzerland IMO and wait for the inevitable collapse of all the streamers because most don’t have a compelling value prop vs Netflix and are losing a ton of money, which isn’t as tenable when interest rates are non-zero. Peacock won a bunch of subs but their monetization is still in phase 1 of the Underpants Gnomes business plan.

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I get that too, my only counter is I think you describe what the cable model was, built on the idea they owned the only content pipe and the content choices were more finite. The proliferation of content not coming through the TV combined with competition for delivery (fiber or wireless or satellite) has already jeopardized their position and they are pivoting more to a pure media company.

They are making more bets, and to your point some will turn out to be dumb. I think not doing it makes you run the risk of being the last horse and buggy manufacturer wondering what to do about cars.

The traditional cable business has been declining steadily for the last decade or so and no one is quite sure how to replace the revenue streams.

sezwho said:

I get that too, my only counter is I think you describe what the cable model was, built on the idea they owned the only content pipe and the content choices were more finite. The proliferation of content not coming through the TV combined with competition for delivery (fiber or wireless or satellite) has already jeopardized their position and they are pivoting more to a pure media company.

They are making more bets, and to your point some will turn out to be dumb. I think not doing it makes you run the risk of being the last horse and buggy manufacturer wondering what to do about cars.

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And I disagree that the cable bundle is going away like the horse and buggy. It will be slimmed down and likely reliant on live / time sensitive content, so news and sports.

The main issue I have is with the strategy. They’re trying to go left and right at the same time. That’s usually not a recipe for success. I think one or the other can be successful. I do not think both can.