Major media conglomerates often produce original TV series through their production companies, selling and licensing the content externally as a key short-term revenue strategy. However, the industry faces the challenge of balancing strategic licensing with the need to grow their own streaming platforms through exclusive titles to attract and retain subscribers — especially under the pressure of Wall Street’s ever-changing expectations.
To explore this trade-off, Parrot analyzed the potential value “The Umbrella Academy” could have brought to Peacock if it had been available there instead of licensed to Netflix, using Parrot Analytics’ Streaming Economics insights.
Produced by Universal Content Productions, a subsidiary of NBCUniversal, “The Umbrella Academy” premiered on Netflix in 2019 and became one of its most in-demand shows, cultivating a dedicated fanbase. In Q3 2024, following the release of its fourth and final season, the series was Netflix’s second-highest contributor to subscriber acquisition revenue, accounting for approximately 0.8% of acquisition revenue for the quarter.
If available on Peacock in Q3, NBCU’s streaming platform, the show would have ranked fifth in acquisition share, driving 2.1% of new subscribers during the same period. This would place it close to Peacock’s top performers, like NBC’s flagship series “The Office,” which accounted for 2.5% of acquisitions.
Based on the shared audience between “The Umbrella Academy” and other platform’s catalogs, Parrot estimates that the audience driven to Peacock by the show would come mostly from Netflix, where the first three seasons were released, Max and Amazon Prime Video. Additionally, “The Umbrella Academy””would have been particularly valuable for attracting a younger, predominantly female audience — two demographics Peacock (and all the other major SVODs) struggles to engage, according to Parrot Analytics Audience Solutions.
The decision to license or retain the show involves numerous factors. While “The Umbrella Academy” could boost Peacock’s subscriber growth, the first season premiered before Peacock’s launch, and its ongoing popularity on Netflix generates rising licensing revenues for NBCUniversal. The question remains: would the show’s revenue potential on Peacock outweigh its lucrative licensing earnings?
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