Comcast's NBCUniversal unit is reportedly weighing whether to pull much of its content from Hulu and make it exclusive to Peacock to boost that streaming service.

Alan Breznick, Cable/Video Practice Leader, Light Reading

November 23, 2021

3 Min Read
Comcast may move Hulu content to Peacock

Seeking to boost its Peacock streaming service, Comcast's NBCUniversal unit is looking at moving most of its content from Hulu to an exclusive position on Peacock, according to a report in The Wall Street Journal (subscription required).

The Journal report says that NBCU, which holds a one-third stake in Hulu with Walt Disney Co. owning the rest, is weighing this move to beef up Peacock, which has struggled to add subscribers at the same pace as Hulu, Disney+ and some other streaming services since its launch in June 2020. If carried out, the shift would likely take place before fall 2022, when NBCU's window for exiting its content-licensing agreement with Disney will run close.

If NBCU decides to make this move, it could strip such popular NBC shows as "The Voice," "Chicago PD" and "Saturday Night Live" from Hulu's lineup, as well as possibly older hit programs like "Will & Grace," according to the Journal. But it wouldn't affect re-runs of other older NBC shows like "Law & Order: SVU" and "Friday Night Lights."

Figure 1:

Hulu's how-do-you-do

While such a move would likely help Peacock, it could hurt Hulu and NBU's bottom line because NBCU owns a big stake in Hulu, the Journal notes. A content shift to Peacock could also lower the value of NBCU's holdings by making Hulu a less esteemed asset. Among other things, Disney and Comcast are now squabbling over Hulu's total valuation, with the two partners now in arbitration over the matter.

Other options are available as well. For one, Comcast and Disney could work out a new content-sharing deal that extends further into the future. For another, they could agree to lengthen the window for when an NBC show runs on Hulu, thereby giving Peacock a longer period of exclusivity.

As the Journal points out, Comcast and Disney can exercise options to end their Hulu partnership in 2024. At that point, observers expect Disney to buy out Comcast's stake and assume 100% control of Hulu.

In its latest earnings update, Disney reported that Hulu now has nearly 44 million premium subscribers, up 20% from a year earlier. In July. Comcast reported that Peacock had 54 million subscribers, but it didn't break down that total between its pay tiers and free, ad-supported tier.

Just last week, as part of its growth strategy, Peacock started expanding into Europe with a "soft launch" to Sky TV and NOW customers in the UK and Ireland. For further expansion into Europe, NBCU and Comcast plan to team with ViacomCBS on a new service called SkyShowtime that will feature content from Sky, NBCU, Universal Pictures, Peacock, Paramount+, Showtime, Paramount Pictures and Nickelodeon. SkyShowtime is expected to launch sometime in 2022 and reach more than 20 European markets.

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— Alan Breznick, Cable/Video Practice Leader, Light Reading

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About the Author(s)

Alan Breznick

Cable/Video Practice Leader, Light Reading

Alan Breznick is a business editor and research analyst who has tracked the cable, broadband and video markets like an over-bred bloodhound for more than 20 years.

As a senior analyst at Light Reading's research arm, Heavy Reading, for six years, Alan authored numerous reports, columns, white papers and case studies, moderated dozens of webinars, and organized and hosted more than 15 -- count 'em --regional conferences on cable, broadband and IPTV technology topics. And all this while maintaining a summer job as an ostrich wrangler.

Before that, he was the founding editor of Light Reading Cable, transforming a monthly newsletter into a daily website. Prior to joining Light Reading, Alan was a broadband analyst for Kinetic Strategies and a contributing analyst for One Touch Intelligence.

He is based in the Toronto area, though is New York born and bred. Just ask, and he will take you on a power-walking tour of Manhattan, pointing out the tourist hotspots and the places that make up his personal timeline: The bench where he smoked his first pipe; the alley where he won his first fist fight. That kind of thing.

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