Looking to push major distribution for Peacock, NBCUniversal has struck a wide-ranging distribution deal with YouTube that also includes carriage for its owned TV stations.
A key element of the
agreement, according to one analyst, is a "bundling" deal for Peacock on YouTube Premium, the streaming platform, where subscribers would get Peacock for free starting in 2027.
YouTube
Premium largely carries no advertising for its YouTube content.
“Most interestingly, [the deal] adds Peacock Premium (with ads) to YouTube Premium at no extra cost,” says Richard
Greenfield, media analyst for LightShed Partners.
“Given that NBCU believes only a small fraction of YouTube Premium subs in the U.S. already have Peacock, this should add millions of
subscribers to Peacock’s current base of 48 million subscribers.”
Users who buy YouTube Premium (at $15.90/month) will now get Peacock Premium (with ads, which is a 10.99/month
value) for free.
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YouTube Premium is estimated to have an estimated 20 million to 22 million U.S. subscribers -- with around 5 million to 7 million for YouTube Music. Globally, YouTube Premium
subscribers are estimated at 80 million to 90 million.
Currently, YouTube Premium also gives users YouTube Music Premium for free -- if they are using a music platform for just
“background” music play. The cost for full YouTube Music Premium is $10.99/month.
It is possible that YouTube Premium will see a price hike beginning in 2027, according to
Greenfield.
While YouTube Premium largely is ad-free for its content, brand messaging inserted directly by its creators' programming cannot be cut out. Still, YouTube offers a “jump
ahead” feature in some of these cases.
In addition, live broadcast content such as NFL programming and other live sports events, and live creators' streams -- does contain ad
messaging.
NBCU deals also include carriage for its TV stations on YouTube TV, the virtual pay TV provider. Also, a selection of live NBCU sporting events will stream on NBC
Sports’ YouTube channel.
The deal also adds Peacock Premium (with ads) to YouTube Primetime Channels -- a subscription distributor similar Roku, for example -- as well as a renewal of
Peacock Premium+ (without ads) on YouTube Primetime Channels.
Greenfield says that overall, the NBCU deal is valuable for YouTube because it brings NBCU sports content such as the popular
“Sunday Night Football,” which airs on Peacock and the NBC Television Network.
Last season, NBCU added “Sunday Night Basketball” to its sports content programming
lineup.