Peacock expands reach to bars and restaurants to boost visibility

The news: NBCUniversal has reached a multiyear licensing agreement with EverPass Media, a company that works with rights holders and distribution partners to commercially distribute live events.

• Under the deal, EverPass will distribute Peacock’s exclusive first-run live sports content library, including select NFL, soccer (US and England Premier League), and NCAA events, to commercial venues across the US, including bars and restaurants.
• NBCUniversal aims to attract more subscribers and make its streaming service more visible to potential customers.
• EverPass, backed by RedBird Capital Partners, works with rights holders, distribution partners, and business owners to commercially distribute premium live events.

Why it matters: Digital out-of-home content and advertising are growing in importance. In February, CTV content provider Atmosphere raised $65 million to continue its mission of offering unskippable DOOH ads in venues like restaurants and gyms, attracting advertisers.

The partnership is meant to expose Peacock's sports offerings to a wider audience outside of the typical household setting.

Behind the numbers: Since its launch in 2020, Peacock has garnered 24 million paid subscribers.

• Despite that growth, Peacock has been facing financial difficulties, posting a $651 million EBITDA loss in the second quarter, swelling 39% from the previous year's loss of $467 million.
• Peacock's EBITDA losses are expected to exceed $3 billion this year, but it should surpass $1 billion in ad revenues in the US.

Our take: The deal between NBCUniversal and EverPass is a strategic move to diversify Peacock’s audience and increase its brand visibility.

• The partnership strengthens EverPass' role as a major commercial distributor of live events and positions it as a preferred partner for content creators and rights holders.
• Distributing exclusive live sports content to commercial venues allows Peacock to tap into a broader market and help drive growth (and eventually, profitability). But how many bar patrons pay all that much attention to the service provider a venue is tuned into?