NBC’s Super Bowl Streaming Data Implies Little Impact for Now

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Earlier this month, NBC released its streaming numbers for the Super Bowl. [1] According to the company, about 2.1 million viewers watched its live streaming, the total number of minutes watched was about 78.6 million, and the total number of streams were close to 4.6 million. [1] A closer look at the total streams suggest that either users watched a small portion, left and came back later, or the user experience was not optimal which meant they had to restart the stream at least twice. Operational issues aside, we take a quick look at the financial value of such an endeavor. NBCUniversal is owned by Comcast (NASDAQ:CMCSA) and competes with other media giants such as Disney (NYSE:DIS) and News Corp (NASDAQ:NWS).

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While NBC had some small operational issues, we believe the risk is minimal as the incremental financial value of such an attempt is negligible, at least for now. The company said that about 1.83 million commercials and game highlights were viewed during Super Bowl. [1]

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Given that NBC has been selling advertisement slots for as much as $4 million for Super Bowl and about 111 million viewers watched the game, it implies that the advertisement rates stood at around $36 per 1000 views. Even if we apply the same advertisement rate to its streamed commercials, we can estimate that NBC did not even earn $100,000 in revenue from them. This pales in comparison to its total broadcasting revenues of $5.5 billion.

The online viewership is still very limited, at least for such sporting events. Even though on some metrics NBC’s Super Bowl experience does not wow us, the benefit for developing this channel overtime could make this an area worth watching.

Our price estimate for Comcast stands at $26.60, implying close to 10% discount to the market price.

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Notes:
  1. Super Bowl Streaming: 2.1 Million Served, streamingmedia.com, Feb 8 2012 [] [] []