Comcast (CMCSA) subsidiary NBC is preparing to sign a deal that will secure the rights to stream the annual Macy’s (M) Thanksgiving Day Parade on its Peacock network. The Wall Street Journal reports that the media conglomerate is attempting to procure the rights to stream the parade, one of broadcast television’s biggest annual events, on Peacock for the upcoming decade.
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While the current contract to air the parade carries an annual fee of $20 million, sources indicate that the new deal could value the streaming rights at $60 million per year.
What’s Happening with Comcast Stock Today?
After a volatile day of trading, Comcast stock closed out trading in the red but shares are rising in after-hours trading. This is likely due to general volatility and the uncertainty surrounding MSNBC, a network that currently has several billionaires, including Elon Musk, discussing trying to buy it. Despite these less than ideal market conditions, CMCSA stock still performed well last week and is currently up 3% for the past five days.
There is no question that keeping the rights to stream the Macy’s Thanksgiving Day Parade is beneficial to Comcast. However, with the price for doing so set to effectively triple, it’s worth asking if the end justifies the means. Clearly, NBC has decided that they do, as the network is taking steps to continue airing the event. The news is certainly beneficial to Macy’s as well since the retailer stands to collect substantially more money from its parade.
As the Journal notes, “the price increase is indicative of the value of live programming to media companies as viewers flee traditional television for streaming services.” It shows that NBC is going all in on streaming, clearly recognizing that its industry is shifting. This suggests that it is adapting well to the new economic landscape. While Netflix (NFLX) remains the streaming leader, Comcast may be a stock to watch for valuable exposure as well.
Wall Street Is Mostly Bullish on Comcast Stock
Wall Street doesn’t seem worried about NBC’s decision to take on bigger parade payments. Analysts have a Moderate Buy consensus rating on CMCSA stock based on 12 Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 6% rally in its share price over the past year, the average CMCSA price target of $49.47 per share implies 15% upside potential.
