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Comcast NBCUniversal To Launch Streaming Service In 2020: What You Need To Know

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Comcast NBCUniversal To Launch Streaming Service In 2020: What You Need To Know

Comcast Corporation (NASDAQ: CMCSA) subsidiary NBCUniversal said Tuesday it will launch a free, ad-supported streaming service next year to cable or satellite package subscribers. 

The new streaming channel will take advantage of NBCUniversal’s huge content library, which includes NBC TV, USA Network and SYFY shows and movies from Universal and DreamWorks.

It makes NBC the latest to jump into an increasingly crowded streaming space, joining CBS All Access, HBO Now and ESPN+ as streaming services started by TV networks hoping to use their libraries and programming to compete with the likes of Netflix, Inc. (NASDAQ: NFLX), Amazon.com, Inc. (NASDAQ: AMZN)'s Prime and Hulu. 

Comcast also has a 30-percent stake in Hulu LLC.

Tuesday also brought an announcement from Netflex that it is raising prices on its streaming service.

Launching 52-Million Strong

The move could help Comcast stem subscriber losses by adding the streaming channel for no extra charge.  

The streaming service won't be available only to Comcast subscribers, though. NBCUniversal said the streaming service will be available for free to paying subscribers of other pay TV companies that agree to provide it — including Comcast competitors.

If only the subscribers to Comcast Cable and its recently acquired British satellite provider Sky are counted, the new service will reach 52 million viewers for free at its outset.

NBCUniversal said customers who aren’t subscribed to a pay TV service such as a cable or satellite package will be able to purchase a subscription to the service. CNBC — which is owned by NBCUniversal — reported the option will cost about $12 a month.

Limited Ads 

“Advertising continues to be a major part of the entertainment ecosystem and we believe that a streaming service, with limited and personalized ads, will provide a great consumer experience,” NBCUniversal CEO Steve Burke said in a press release. 

Burke told CNBC Tuesday that the free stream will include between 3 and 5 minutes of advertising per hour, and that NBC expects to make about $5 per month per user from ads. The service will include some live news and sports programming in addition to on-demand shows, he said. 

More details on the new streaming service: 

  • NBC will continue to license content to other studios and platforms, while certain content will be retained for use on the new streaming service.
  • The service will launch in early 2020.
  • The division running the streaming service will be headed by Bonnie Hammer, whose new title will be chairman, direct-to-consumer and digital enterprises.

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Photo courtesy of Comcast. 

Posted-In: streaming videoNews Tech Media Best of Benzinga

 

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