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November 18, 2021

Streamer Peacock flies to Europe buoyed by Sky’s tailwinds

By GlobalData Technology

NBCUniversal’s Peacock streaming service has debuted in Europe, exclusively on Sky in the UK and Ireland. Peacock will no doubt attract viewers as a freebie for Sky TV customers.

However, given the raft of blockbuster SVoD offers available in Europe, it will face major headwinds if it reverts to the freemium model it is employing in the US, aimed at funnelling customers up the value chain from a completely free, ad-based, service to a premium paid, commercial-free subscription tier.

The Peacock Comcast connection

Whether Peacock will commit to such a permanent course correction in Europe is an open question. Both NBCUniversal and Sky are owned by US powerhouse Comcast, so the streamer’s initial landing as a free exclusive on Sky-branded properties is a logical and complementary fit.

However, Comcast’s content agenda is more complicated than simply proliferating own-brand streamers outside the US, whether direct-to-consumer or via partner platforms. The company’s stable of content assets is expansive, but also fragmented. In order to gain the best possible leverage, Comcast has been steadily integrating disparate services and platforms, exploiting the breadth and depth of its content portfolio to increase market reach and sharpen penetration.

It’s SkyShowtime

The next phase of Comcast’s global content development strategy will be revealed in 2022 with the launch of SkyShowtime, a new SVoD offer from Comcast and partner ViacomCBS, across more than 20 European markets (subject to individual regulator approval). The premium streaming competitor will feature a slate of content spanning audiences and genres from a bevy of brands including Sky, NBCUniversal, Universal Pictures, Peacock, Paramount+ Originals, SHOWTIME, Paramount Pictures and Nickelodeon.

Even armed with that kind of ammunition, carving out a share of the increasingly crowded SVoD market against monoliths like Netflix, Amazon Prime Video and Disney+ along with the plethora of other on-demand options available to European consumers will be a hard-fought and resource-intense campaign.

Nonetheless, Sky is a bastion of the European content and pay-TV market in its own right. Feeding new proprietary on-demand offers like Peacock into Europe via Sky’s expansive and well-oiled pipeline will help grease the wheels for bigger and bolder incursions from vanguards like SkyShowtime.