NBCUniversal’s Peacock lost more than half a billion dollars during the three months of summer, the latest example of Hollywood’s streaming carnage that has seen studios struggling to carve out a profitable piece of the home video market.
Peacock lost $565 million for the fiscal third quarter, which covered the period from June through August. The loss marked a modest improvement from the same quarter last year, when Peacock lost $614 million.
For the year so far, Peacock’s losses amount to $1.92 billion. Looking ahead, Peacock is predicted to lose $880 million in the fourth quarter, meaning the streamer is forecasted to lose a staggering $2.8 billion for 2023.
The flood of red ink shows legacy studios, like Comcast-owned NBCUniversal, are still a long way from finding a profitable alternative to their once reliable cash cow — cable TV, which is dying a long, slow, but certain death as households keep cutting the cord by the millions.
Studios are also getting hammered by weak TV advertising revenue, which has been hit hard by the Biden economy as households cut way back on spending due to skyrocketing inflation on essential items like food and energy.
Since launching three years ago, Peacock has failed to produce a breakout hit that would act like a magnet for viewers — though the streamer is home to Yellowstone, which it licenses from Paramount.
Peacock serves as the streaming home to some of the far-left MSNBC’s programming, including The Reid Out, hosted by Joy Reid.
The streamer also produces The Mehdi Hasan Show.
Other streaming services from legacy studios are also bleeding billions of dollars.
Disney reported its streaming business — including Disney+ and Hulu — lost $512 million for the fiscal third quarter, while Paramount+ lost $424 million for the same period.
As a result, many streamers are introducing ad-supported tiers while also jacking up the prices for their traditional services.
The resulting phenomenon — known as “streamingflation” — has pushed up monthly subscription prices by as much as 40 percent in some cases.
Peacock raised its prices for the first time in July, though it remains cheaper than most of its competitors.
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