What would Michael Scott do?... Our thoughts when we heard NBC was pulling The Office out of Netflix. Now Comcast-owned cable king NBCUniversal is embarking on a broad restructuring of its entire media biz — NBC is moving its news network, cable channels, and streaming all under 1 giant umbrella:
- The new unit, NBCUniversal Television and Streaming (that's a mouthful), includes NBC's news networks (NBC, CNBC, MSNBC), cable channels (like Bravo, USA and E!), and NBC's new streaming service Peacock.
- Peacock is the new kid among NBC's old cable types — it launched on April 15 to Comcast subscribers, and will launch nationwide in July.
If you thought Peacock was just a fun little dip into streaming... you were wrong. NBC is now putting streaming at the center of its media operations and future aspirations. The barely-launched streamer is getting a head seat at the table with NBC's established old guard.
- CEO Jeff Shell hopes the new structure will set NBC up for future success "during this transformational time in the industry.”
- Cord-cutting has accelerated in the corona-conomy, and ad sales are suffering on fallen spending — NBC might see its subscription streaming service as a way to fill those gaps.
NBC is cutting its own cord... Despite cable's decline, many still stick with it for live sports, news, and award shows. NBC has that on lock, from the NFL to SNL to America's Got Talent. Now it can combine live broadcasts and on-demand video all on one platform (Peacock). To be competitive, NBC would have to offer a way lower price than Hulu+ Live TV, which is already doing this on-demand + live streaming content model for $55/month (not that different than cable).