NBCUniversals Peacock ends phase one of the streaming era; phase two will test theory of disruptive innovation
Summary
In whats become a right of passage in the world of media and entertainment, Comcasts NBCUniversal will unveil Peacock, its new video streaming service, during the companys investor day Thursday in New York. Disney, Amazon, AT&T, Comcast and Apple are among the largest companies laying the groundwork for a mass transition in media consumption, but their products also work as complements to traditional TV rather than replacements. This pattern of innovation is fairly common, said Brian Hindo, a partner at strategy consulting firm Innosight, who works with media, technology and consumer clients. Just as cellphones initially operated as complements to landline phones and mini mills were seen as niche manufacturing factories for low quality steel, streaming services will be incomplete offerings until they reach scale, said Hindo. If streaming products can actually get to profitability — most of the major companies are predicting they will hit this point in three to five years — they will then be able to expand their reach and improve their offerings to accelerate the demise of cable TV, Hindo said.