Comcast’s (CMCSA) NBCUniversal’s broadcast of the Summer Olympics has paid off big time. According to the media conglomerate, over 30 million viewers tuned in across NBC’s television and streaming platforms to watch the Games, generating a record-breaking $1.2 billion in advertising revenue.
The Paris Olympics were the 18th Olympic Games broadcast by NBC in the U.S. The company secured the broadcast rights for the Games from 2022 to 2032 in 2014 with a commitment of $7.65 billion. This figure amounted to around $1.2 billion for set of Games.
This year, the company intensified its efforts to bring in more viewers for the Olympics, using substantial resources to boost viewership, particularly for its streaming platform, Peacock.
What Was Comcast’s Strategy During the Paris Olympics?
The company’s broadcast of the 2021 Tokyo Olympics and the 2022 Beijing Olympics saw record-low audiences for the Summer and Winter Games, respectively. This likely due to both the games being held amid the early stages of the pandemic, with Tokyo postponed by a year, and neither event allowing fans or families to attend. Additionally, the time zone differences between Asia and the U.S. hindered viewership.
This time around, Comcast changed its strategy. For the Paris Games, the company engaged NBCUniversal’s star power to draw in viewers. Besides airing promotional content, NBC’s A-list personalities were actively involved in the events, co-hosting and reporting from the sidelines. The Games also provided a platform to promote NBC and Peacock shows, as well as Universal’s upcoming film Wicked.
Comcast’s Peacock Attracted More Viewers
According to the company, Comcast’s popular streaming platform Peacock saw its viewers streaming the Olympics for an impressive 23.5 billion minutes. This was a 40% rise from all previous Summer and Winter Olympics combined,
Peacock’s success was further bolstered by its comprehensive coverage, including exclusive shows like Gold Zone, so fans of the olympics could find material to watch all day long. According to a CNBC report, citing data from Antenna, Comcast’s efforts resulted in an estimated 2.8 million new consumers signing up for Peacock during the first week of the Summer Games, averaging nearly 400,000 additions daily.
Is CMCSA a Buy or sell?
Analysts remain cautiously optimistic about CMCSA stock, with a Moderate Buy consensus rating based on 11 Buys, seven Holds, and one Sell. Over the past year, CMCSA has declined by more than 6%, and the average CMCSA price target of $46.55 implies an upside potential of 17.6% from current levels.
