Comcast, the media conglomerate that oversees NBCUniversal and Peacock, lost a large number of customers in the first quarter of 2023. For reference, estimates place the number of subscribers getting rid of Comcast Xfinity cable at nearly 7,000 each day. Over the first quarter of 2023, which is 90 days from the beginning of January to the end of March, Comcast lost a total of 614,000 video customers. Recouping some of that loss was just 32,324 broadband customers in that same time range.
This drop in customers also contributes to a hefty loss in revenue for Comcast. The service’s revenue was $29 million in the first quarter of 2023. That is a dip of 4.3% year over year.
Where one customer count drops, though, another rises. Peacock, NBC’s paid-streaming service, did report a jump in subscribers in the first portion of 2023. Q1 brought a 60% increase in subscribers. The service gained two million subscribers to bring its total to 22 million. The increase brought increased revenue, too, with an increase of 45%. Therefore, revenue jumped to $685 million.
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Both Peacock and Comcast losing millions
While the revenue is one thing, it does not equate to profits. In fact, Peacock expects billions in losses this year alone. Perhaps more startling is the fact that Peacock lost around $7 million each day in the first quarter of 2023. Spread out over the rest of 2023, Comcast warned Peacock subscribers that the service would lose roughly $3 billion as it changes. Comcast users — for now — get a free Peacock subscription, so that does eat into the potential earnings for the service. However, beginning this summer, that free access ends.
Peacock is not alone in its monetary losses. Both Disney+ and Paramount+ do not expect to turn a profit until either 2024 or 2025.
Regardless, all three of the parent companies for these streaming services see this as a long-term investment. They will continue to run through money until the profit comes around, even if it is a couple of years down the road.
PHOTO: IMAGO / Panthermedia
