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Comcast’s NBCUniversal is laying plans to introduce a premium online video service highlighting NBC Network content and possibly various programming from the various cable channels owned by Comcast.
After watching rival CBS amass more than 1.5 million subscribers for its “All Access Pass” ($5.99, $9.99/mo for commercial-free option), Comcast’s NBC entertainment division isn’t willing to leave money on the table any longer.
The yet unnamed service is expected to compete with services like Hulu and Netflix, but will most likely be comparable to CBS’ premium subscription offering. In addition to featuring a deep library of NBC content, the service could include a significant catalog of past and present shows from cable networks like Bravo, SyFy and USA. Also to be determined is whether NBC will follow CBS’ lead and offer viewers live streaming of their local NBC station as part of the package.
The new service may not launch in the immediate future because Comcast is still observing restrictions imposed by regulators as a condition of its 2011 acquisition of NBCUniversal. The rules make it difficult for Comcast to develop services comprised entirely of content it owns or controls. Federal regulators added the restriction out of concern Comcast could interfere with Hulu’s access to NBC content. Hulu is popular with cord-cutters, and is seen as a viable alternative to cable television. The last of these restrictions expire in September 2018, about the time Bloomberg News reports Comcast is likely to launch the service.
If all the major American networks decide to develop their own premium streaming services, it could have significant implications for Hulu, which combines content from its partners NBC, ABC, and FOX. If NBC pulls out of the partnership, it will be free to keep all the revenue earned from its own streaming platform, and could inspire ABC and FOX to follow.
Observers suspect this represents more evidence that broadcast networks increasingly expect viewers to pay for access to their programming, at least online.
Hmmmm. Not thrilled about this. Is the writing on the wall for Hulu? I really like it, but it was already missing CBS and PBS, then it loses The CW, and now maybe it’ll lose NBC (and associated content) even though it’s partially OWNED by NBC? I always assumed that the company who’s show was airing got a different/bigger cut of ad revenue, or had different ad deals maybe, or something. I really liked the idea of Hulu as a sort of almost-broadcast TV replacement, and thought it was shockingly smart of the industry to do to grab ad revenue… Read more »