NBCUniversal revealed a critical number about Peacock that shows why media companies are walking slowly into streaming

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NBCUniversal revealed a critical number about Peacock that sums up the streaming conundrum

s NBCUniversal estimates its streaming service will generate average revenue per user per month of $6 to $7. This is an aggregate total for NBCUniversal's three tiers of Peacock -- the free tier that will make money solely from advertising, a $4.99 per month tier that will have a more robust content offering butThat $6 to $7 is less than what the company generates today from selling its products to cable networks.

during its investor day for Disney+, targeting 2024 as a break-even date. NBCUniversal is predicting it will have between 30 and 35 million Peacock subscribers by 2024. Disney predicted between 60 million and 90 million customers for Disney+. But if that happens, the question is whether NBCUniversal can turn Peacock into a vehicle that generates more revenue-per-user than the cable bundle for the same amount of subscribers -- today that number is about 80 million U.S. households -- while keeping costs the same or lower.

But to boost ARPU, either advertising rates or ad load will have to increase, or subscription prices will have to go up.

 

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