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Days after Comcast fired NBCUniversal’s Jeff Shell, the company held its first-quarter earnings call, addressing the former CEO’s departure and Peacock’s growing losses.
Brian Roberts, chairman of NBCU’s parent company, didn’t shy away from the Shell news, telling investors Thursday morning that the firing was “obviously a tough moment” for the organization. As a result, Comcast president Mike Cavanagh will step in as head of NBCUniversal for the time being.
Regarding Peacock, the streamer grew its subscriber base to nearly 22 million, adding 2 million during the quarter as Comcast continues to lean into a dual-revenue model.
The 2 million additions are down from the 5 million it added to end 2022. And though the company had a $704 million loss from the streamer, it’s an improvement over the $978 million adjusted losses last quarter.
CFO Jason Armstrong reiterated that Comcast believes 2023 will be “peak losses” for the platform, which did see its revenue increase 45% to $685 million.
Cavanagh attributed Peacock’s subscriber growth to a strong slate of film content and originals, including the Natasha Lyonne-led Poker Face.
“We’re just getting started [with originals],” said Cavanagh, “with shows like Poker Face, which launched and immediately landed near the top of Nielsen’s U.S. streaming original list, and we have lots more coming.”
Cavanagh also attributed the popularity of NBCUniversal’s linear content, especially Dick Wolf shows, SNL and Bravo programming, which all land on Peacock the next day, as part of the subscriber growth.
“We believe we have the right strategy for Peacock and one that’s suited to our strength,” Cavanagh added, pointing to the dual revenue streams of advertising and subscription fees.
In the driver’s seat
In terms of the company’s future, NBCUniversal is in no hurry to find a more permanent replacement for Shell.
“The way me stepping in to oversee NBC is quite sustainable,” said Cavanagh, adding that as president of Comcast, he was already “quite close” to the people who run the NBCU and cable businesses.
“While I’ll have to work a little harder, and frankly, I’m energized to do so … and since I’m going to be here for a long time, I actually think that’s good for me and good for the company over the long term,” Cavanagh said, noting there is “no timetable” and “no pressure” to do anything other than “make sure the businesses hum.”
NBCU recently told Adweek that Shell’s departure wouldn’t have a major effect on the company’s upcoming upfront week presentation, with Linda Yaccarino, chairman of global advertising and partnerships, and Mark Marshall, president of NBCU advertising sales and client partnerships, always set to lead the event.
