Comcast (CMCSA) Peacock Adds Content From ViacomCBS Library

Comcast CMCSA owned NBCUniversal’s new streamer Peacock has reached a licensing deal with ViacomCBS VIAC to carry select CBS and Showtime series along with Paramount films.

Comcast will launch Peacock’s complete comprehensive range of services across mobile, web and connected TV platforms in the United States on Jul 15. Notably, Peacock’s premium tier, which is ad free, will cost $9.99 per month. Peacock’s offering also includes a free, ad-supported tier limited to a range of 7500 hours of content and a $4.99-premium, ad-supported tier with 15000 hours of content.

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ViacomCBS Content Deal Not Exclusive

Peacock will gain access to Showtime's Ray Donavan and The Affair, the original series Charmed, Everybody Hates Chris, The Game, Undercover Boss and Real Husbands of Hollywood. Of all the series, only Charmed is slated for a debut in October 2020.

Notably, the additional programming will be available nonexclusively to Peacock. ViacomCBS can license the films and shows to other streaming services and also include them on their respective ViacomCBS streaming services, including Showtime and CBS All Access.

Additionally, blockbuster films from Paramount’s library will stream on Peacock in limited exclusivity windows throughout 2021, 2022, and 2023 including The Godfather trilogy, Catch Me If You Can, The Talented Mr. Ripley, American Beauty, Patriot Games, Last Holiday, Fatal Attraction, The Firm, An Officer and A Gentleman and others.

Moreover, Peacock customers will also enjoy daily programming highlights from TODAY, NBC Nightly News, Meet the Press, Noticias Telemundo, MSNBC, CNBC, NBC Sports, E! News and Access Hollywood.

The licensing deal comes even as ViacomCBS is planning to release an updated and expanded version of CBS All Access that will include Viacom cable networks as MTV, Comedy Central and BET and Paramount content. The service is expected to be relaunched next year with an extra 15,000 hours of content.

Peacock Set to Heighten Competition With Licensing Deal

Comcast’s hybrid business (both subscription and advertising) model is expected to be a key differentiator for Peacock in an overcrowded streaming industry saturated with pure subscription services from the likes of Netflix NFLX , Disney DIS , Amazon prime video and Apple.

There are two different core strategy moves from the major players in the streaming spaces —total exclusivity or licensing. Netflix, Amazon prime video, and Apple TV+ don’t have the decades-long library of IP that ViacomCBS, NBCUniversal, and Disney offer.

Since ViacomCBS, NBCUniversal, and Disney have huge libraries, they can license a number of their titles to other streamers for additional revenues while also building up their own exclusive originals to bulk up offerings.

If consumers only have an appetite for three or four streaming services, other media companies may choose to license their content to the most popular services instead of competing on the strength of their original content.

Disney licenses ABC shows to Netflix but uses it’s most popular brands as an exclusivity play on Disney+ streaming service. The company has also worked on bringing as many titles it licensed out like some of the Marvel Cinematic Universe movies that were streaming on Netflix back to Disney+ as exclusive offerings.

Moreover, the entry of Peacock’s new low-cost and ad-based subscription service is likely to threaten Netflix’s dominance in the streaming industry. The free tier offering will help Comcast attract advertisers, once the impact of coronavirus dies down.

The vast customer data that it gathers including data from Comcast's cable TV set-top boxes will aid advertisers to target users depending on their viewing interests.

Moreover, this Zacks Rank #3 (Hold) company, which has been losing video customers due to cord-cutting, expects Peacock’s solid content to aid its user base in the long haul. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Notably, Comcast will invest $2 billion largely in technology, marketing and programming for Peacock in 2020 and 2021, and has plans to break even by 2024, setting a target of 30-35 million active accounts by that time.

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