When Peacock streams its first exclusive NFL games, it will be leaving some money on the table—with a bigger picture in mind.
The NBCUniversal-owned streaming service will be commercial-free during the fourth quarter of both coming National Football League games—a regular season matchup Saturday between the Buffalo Bills and Los Angeles Chargers and a playoff battle Jan. 13 that Peacock paid around $110 million to carry.
The move seems counterintuitive, given that NFL games are a premium destination for advertisers and a cash machine for media companies. Peacock is expecting a lot of new viewers, however, and wants to give them a first-class experience that will persuade them to become paying subscribers.
“The bosses get it,” said Mark Marshall, chairman of NBCUniversal’s global advertising and partnerships unit, when asked how the brass at NBCUniversal and parent Comcast reacted to the idea of a game with about 40% fewer ads.
Imagine paying $110 million for a late season Bills Chargers blockbuster exclusive and then getting Easton Stick.