NBCUniversal’s Peacock is stretching its wings by joining the subscription YouTube Premium service — a significant boost for the streaming platform that has struggled to find its niche in the increasingly crowded landscape.
NBCUniversal and Google’s YouTube on Monday announced the multi-year partnership. Beginning early next year, Peacock will be available as part of YouTube Premium’s U.S. subscription bundle, which also includes ad-free videos and music.
The pact represents Peacock’s largest wholesale distribution agreement to date, one that will introduce the service into millions of new homes.
YouTube and NBCUniversal declined to disclose financial terms. YouTube Premium currently costs consumers $15.99 a month, and the San Bruno company plans to maintain that fee, a Google spokesperson said.
Pricing for YouTube Premium bundled with Peacock has not been announced.
“We will continue to introduce additional offers and options that allow subscribers to easily customize their viewing preferences and select the plan that works for them,” the Google representative said.
NBCUniversal hopes the deal extends Peacock’s momentum after a promising start this year with its coverage of the Winter Olympics, the FIFA World Cup in Spanish, professional basketball and the reality dating show “Love Island USA.”
NBCUniversal owner Comcast disclosed on Friday that the service had finally reached profitability in the second quarter after billions of dollars of investment. Peacock, which launched in 2020, has long lagged other popular subscription video-on-demand services, including Netflix and Disney+.
Peacock grew its paid subscribers by 4% to 48 million in the second quarter, compared to the first quarter.
Monday’s YouTube announcement comes as Comcast prepares to spin off NBCUniversal entertainment, Spanish-language Telemundo and its NBC News businesses into a separate company sometime next year. The proposed breakup comes 15 years after Comcast jumped into the major leagues with its purchase of NBCUniversal from General Electric Co.
The Philadelphia-based cable giant has long tried to make Peacock a compatible asset for its Xfinity broadband and cable TV subscription services. But it has shifted gears to expand its partnerships with larger tech companies in recognition that consumers were getting overloaded with pricey choices.
Last fall, NBCUniversal cut a deal with Apple to bundle Peacock with Apple TV+.
As part of its recent negotiations with Google, NBCUniversal’s linear television channels will remain on YouTube TV, which is the fastest-growing pay-TV service in the U.S.
NBC Sports also will produce some of YouTube’s live sporting events.
The agreement expands the global reach of NBCUniversal’s streaming services, which also include Universal+ and Hayu — a Bravo and reality-TV focused service available in Canada, Europe, Australia and other markets — through YouTube Premium.
“This partnership brings NBCUniversal’s world-class content and iconic franchises to YouTube’s unmatched scale and global platforms,” Mike Cavanagh, NBCUniversal’s chief, said in a statement. “We’re excited to deepen our relationship with YouTube through a collaboration that reflects our strategy of partnering with industry leaders to drive sustained growth for NBCUniversal.”
The deal helps YouTube by giving it a bevy of live sports to promote, including NFL football, NBA basketball, soccer, Major League Baseball and the Los Angeles Olympics. Peacock Premium, which currently costs customers $10.99 a month, separately will be made available through YouTube Primetime Channels service later this summer.
“We’re incredibly excited to expand our partnership with NBCUniversal to redefine what a modern entertainment subscription can be for consumers,” YouTube Chief Executive Neal Mohan said in the statement.
“YouTube Premium brings your favorite creators, artists and cultural moments together uninterrupted, and now, we’re pairing that ultimate viewing experience with Peacock’s expansive lineup of live sports.”
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