NBC Universal’s Peacock is getting a new perch where it can spread its wings.
The Comcast-backed streaming service will be made available via subscription to Amazon’s Prime Video customers, who can sign up for ad-free Peacock Premium Plus for $16.99 per month or $169.99 per year. The arrangement comes as the result of a series of distribution deals crafted between NBCU and Amazon that also make Peacock available for access via Amazon’s Fire TV, and Universal films available for rent or purchase on Prime VIdeo. The agreements also continue to make Prime Video avaiable for access via Comcast’s Xfinity X1 devices.
The pacts give NBCU new ability to distribute Peacock, which has gained some traction for a new heavier focus on sports but still lags bigger rivals in terms of scale, and lends Amazon more heft as a distributor of access to streaming rivals, a position that gives the digital giant more traction with its customers. Last week, Amazon said it would offer subscriptions to Fox Corp.’s new Fox One streaming service. The company offers more than 100 subscription options in the U.S.
“At Amazon, we are always working to make customers’ lives better every day and these new agreements with Comcast NBCU are fantastic for millions of customers, who are looking for the fastest and easiest way to find all their entertainment and sports in one place,” said Mike Hopkins, head of Prime Video and Amazon MGM Studios, in a statement. “Adding Peacock to our growing list of subscriptions – while renewing our long-standing agreements for Fire TV, Universal Pictures Home Entertainment, and Xfinity X1 – deepens an incredible working relationship with Comcast/NBCU, and we look forward to a future of mutual distribution that benefits our shared customers.”
While the idea of teaming up with rivals and contemporaries to distribute streaming platforms has gained new popularity in recent months, NBCU has not taken part in a great deal of it, other than with Comcast’s cable division and Charter Communications, according to a person familiar with the matter. This person says NBCU executives believe a recent spate of sports deals that put the NFL, NBA and Winter Olympics on Peacock are driving new interest in bundles that include the streaming property. The Amazon pact, however, drives added benefits to NBCU’s business, this person says, including the renewal of Peacock’s Fire TV placement and the availability of Prime Video on Comcast’s X1.
Key to the deal is the fact that Amazon will make available ad-free Peacock, even though the bulk of the service’s customers get the ad-free version. NBCU saw an opportunity to sell Peacock subscriptions at a higher price to customers who would likely be more engaged, this person says, and wants to learn from the results.
“Millions of Amazon customers can continue to enjoy NBCUniversal’s popular shows, films, and live events on Peacock via Fire TV or through Prime Video Subscriptions, or buying or renting on Prime Video, while also accessing Amazon’s premier entertainment on Xfinity X1 — ensuring they can watch what they love, wherever and however they choose,” said Mike Cavanagh, president of Comcast, in a statement.
NBCU expects to see new bundling efforts in weeks to come, this person says, and sees the Amazon agreement as a template that might be used in the future.