Comcast NBCUniversal and Amazon have announced a significant expansion of their distribution relationship, enhancing streaming options across multiple platforms.
Comcast NBCUniversal and Amazon Strengthen Distribution Partnership
Comcast NBCUniversal and Amazon have established comprehensive distribution agreements that encompass Prime Video, Peacock, Fire TV, and Xfinity X1.
New Subscription Options for Peacock
One significant aspect of these agreements is the addition of Peacock’s top subscription tier, the ad-free Premium Plus, to Prime Video. Customers can subscribe for $16.99 a month or $169.99 a year. Furthermore, due to a renewed agreement as part of the broader partnership, Peacock remains available on Amazon Fire as a direct-to-consumer offering.
Renewed Film Titles and Streaming Strategy
The existing agreements for the sale and rental of film titles from Universal Pictures Home Entertainment on Prime Video, as well as the availability of the Prime Video app on Xfinity X1 devices, have also been renewed.
Amazon has transitioned away from using the “Channels” label for its subscription business, but it continues to serve as a hub for all things streaming.
History of Collaboration
Although Comcast and Amazon have maintained a long-term business relationship, there have been instances of discord. Notably, Peacock launched in 2020 without Amazon as a distribution partner due to disagreements over terms. However, five years later, both companies are more aligned and will soon share media partnership status with the NBA, which means many viewers will regularly engage with both media ecosystems.
Strategic Bundling Approach
In an interview with Deadline, NBCU Media Group Chairman Matt Strauss indicated that the Amazon agreements reflect NBCU’s strategy with Peacock. The service has adopted a conservative approach to bundling and currently has the lowest percentage of bundled subscriptions among streamers, aside from Netflix. Comcast reported that Peacock concluded the second quarter with 41 million subscribers, unchanged from the previous quarter. Strauss noted that approximately 80% of subscribers are on the ad-supported Premium tier.
“You’ll see us strategically lean into bundling,” he stated, emphasizing the importance of ensuring that “the economic value is right for the portfolio.”
See More ...
Challenges of Bundling
Bundles, especially with large tech firms, can provide a quick boost, but these gains can sometimes be short-lived. “If you don’t structure these deals correctly, you may add subscribers without achieving the right return, and if consumers aren’t engaging, you haven’t succeeded,” Strauss remarked.
Statements from Leadership
In a press release, Comcast President Mike Cavanagh described the distribution deals as “a testament to our close collaboration with Amazon.” Mike Hopkins, Head of Prime Video and Amazon MGM Studios, echoed this sentiment, stating that the distribution alliance “deepens an incredible working relationship with Comcast/NBCU, and we look forward to a future of mutual distribution that benefits our shared customers.”
Peacock’s Role in Prime Video
Peacock joins Prime Video’s collection of over 100 subscription options in the U.S. Customers can also find Amazon MGM Original films and series, movies and series to buy or rent, live sports including Thursday Night Football, NBA, WNBA, NASCAR, and NWSL, as well as hundreds of FAST channels.
Integration with Comcast’s Xfinity
Under the agreements, Comcast’s Xfinity TV customers will continue to access Prime Video’s library of series, movies, live sports, subscriptions, and FAST channels directly through Comcast’s Xfinity X1 platform and the Xumo streambox. Prime Video content can also be searched using Comcast’s Xfinity Voice Remote.
International Partnerships
Additionally, Sky, Europe’s leading media and entertainment company owned by Comcast, has a multi-year partnership with Prime Video on Sky devices across Europe. Sky Sports fans in Germany can now access Sky Deutschland’s premium live sports offering, WOW Live Sports, directly through the Prime Video app as a subscription.
