Many media companies have launched their own streaming platforms to capture users time watching media programming and also to gain monthly recurring revenue.
In 2019, Comcast Corp (NASDAQ:CMCSA) announced a brand overhaul for its direct-to-consumer media brands that included the launch of a streaming platform called Peacock.
Here’s a look at how the stock has performed since that announcement.
What Happened: Comcast announced plans to launch Peacock on January 14, 2019. Plans called for the service to launch in 2020 at no additional cost to those with a pay TV subscription. A standalone service was also announced at a price point of $12 a month.
“NBCUniversal has some of the world’s most valuable intellectual property and top talent, both in front of and behind the camera,” NBCUniversal CEO Steve Burke said at the time. “Our new service will be different than those presently in the market, and it will be built on the company’s strengths.”
Comcast launched Peacock on July 15, 2020. The service now has over 24.5 million monthly active users, including nine million paid subscribers.
Related Link: Super Bowl Ads Seeing Record Price, Demand: Could Comcast Shares Get A Lift
Investing $1,000 In CMCSA: Investors who saw strength in streaming services and thought that Peacock would be successful in taking on rivals could have gone long Comcast stock on the day of the announcement.
Comcast shares hit a high of $35.99 on Jan. 14, 2019. A $1,000 investment on the day could have purchased 27.79 shares. Those shares would be worth $1,285.57 today based on a price of $46.26 for Comcast.
The $1,000 investment would be up 29% over three years, or around an average return of 9.7% annually.
What’s Next: Peacock is one of many streaming services offered to consumers including leaders like Netflix Inc (NASDAQ:NFLX), Amazon.com Inc (NASDAQ:AMZN), HBO Max from AT&T Inc (NYSE:T) and Disney+ from Walt Disney Co (NYSE:DIS).
Another streaming competitor is Hulu, which is 67% owned by Walt Disney and 33% owned by Comcast's NBCUniversal. Disney is slated to purchase Comcast's minority stake in Hulu in 2024.
Peacock has had pockets of success with large subscriber sign-ups around big ticket releases on the streaming app including movies, television shows and sports content.
The 2022 Winter Olympics were just streamed on Peacock, with all events covered live on the app. Peacock reported it had its “best 18 day stretch of usage” in the history of the streaming platform.
“With sharply increased signups, usage and awareness, Peacock streamed every Olympic moment for the first time ever and delivered a user experience that was greatly enhanced from just six months ago,” NBCUniversal Television and Streaming Chairman Mark Lazarus said.
Photo: Courtesy of Thomas Hawk on Flickr
