Comcast (NASDAQ:CMCSA) is about to join the video streaming war with a new product called “Peacock.” With Peacock, Comcast will be following in the footsteps of Dish Network (DISH), AT&T (NYSE:T), and Walt Disney (NYSE:DIS). The companies are taking on Netflix (NASDAQ:NFLX) as the traditional pay-TV market shrinks. Dish and AT&T offer Internet television services under the Sling TV and AT&T Now brands, respectively. In November 2019, Disney launched a new video streaming service called “Disney+.”
As Comcast gears up to launch its Peacock video service, here are three things investors should know.
Peacock wants to be everything to everyone
Initially, Comcast’s Peacock video service will launch on Comcast platforms on April 15. The service will roll out to everyone on July 15. The service will be available in two main tiers—Peacock Free and Peacock Premium.
Peacock Free will offer limited content, show ads, and carry no monthly subscription fee. Peacock Premium will offer more content and carry a monthly subscription fee of between $4.99 and $9.99 depending on whether or not a subscriber is an existing Comcast customer.
Comcast targets 35 million subscribers by 2024
With Peacock, Comcast is entering a crowded market dominated by Netflix. Netflix has more than 60 million subscribers in the US and 167 million subscribers worldwide. Disney+ signed up more than 10 million subscribers on its first day. Last week, Apple said that its Apple TV+ video service had a strong start. However, the company didn’t disclose how many subscribers are there.
Despite entering a crowded market where rivals have a big head start, Comcast expects Peacock to be successful. The company aims to sign up 30 million–35 million Peacock subscribers in the US by 2024. Disney aims to reach 60 million–90 million Disney+ subscribers globally by 2024.
Comcast surrenders Hulu to Disney
Disney is integrating Hulu tightly into its corporate family after it assumed full operational control of the business in a deal with Comcast. Hulu CEO Randy Freer is stepping down as Disney moves to tighten its grip on the business. Comcast has the option to sell its roughly 33% stake in Hulu to Disney. Comcast surrendered operational control of Hulu as it focused on developing Peacock.