NBC’s plans are contingent on striking deals with the largest pay-TV providers, which of which hasn’t yet done, the person said. Still, the product will be free for customers of those providers, so NBC doesn’t plan on any challenges when of which comes to inking those agreements.
Because the service will be free for the millions of people of which already subscribe to pay-TV, NBC will be banking on quickly growing to 30 million or 40 million users with its service, as opposed to slowly growing a paid service along with also also starting at zero subscribers, the person said.
NBC will air between three along with also also all 5 minutes of ads per hour of programming, NBCUniversal CEO Steve Burke told CNBC. NBC expects to make $5 per month coming from every user on the service coming from advertising, he said. NBC’s research showed subscribers prefer free services with low ad load, Burke said.
“One of the interesting things about of which of which makes of which different along with also also innovative will be of which we’ll have a big emphasis on free-to-consumer,” Burke said. “We want to create a platform of which has significant scale along with also also can scale quickly. The best way to do of which, will be make of which free to consumers along with also also leverage the fact of which NBCUniversal’s sister company will be a cable company along with also also at of which point owns Sky.”
The company sees an opening because there will be no long-form, ad-supported streaming service, the person said. For example, Hulu costs $7.99, nevertheless has regular ad breaks. Netflix has long-form content, nevertheless costs a monthly fee. along with also also YouTube will be primarily short-form, user-generated content along with also also supported by ads. NBCUniversal does not plan on aggressively pulling back shows along with also also movies of which has licensed to some other streaming services, the person said.
Burke told CNBC the service will include live TV like news along with also also sports, in addition to on-demand programming. Since of which will launch in early 2020, of which’s likely there will be content around the 2020 Summer Olympics to draw more people to the platform. Burke also said the service will bring in content coming from some other companies like Sony, Discovery along with also also Warner Bros.
NBCUniversal will be throwing its hat into an expensive along with also also competitive ring. Streaming incumbents Netflix, HBO along with also also Hulu are upping content spend along with also also doubling down on original programming to stave off market share threats coming from completely new entrants like Apple, AT&T along with also also Disney, which are set to launch its streaming service later of which year.
Also Monday, NBCUniversal announced a reorganization of senior leadership. Mark Lazarus, currently chairman of NBC broadcasting along with also also sports, will take on a larger role along with also also oversee the company’s cable along with also also news divisions as well. Jeff Shell, currently chairman of Universal Filmed Entertainment Group, has been named chairman of NBCUniversal film along with also also entertainment. Donna Langley will take over as the sole chairman of Universal Filmed Entertainment Group.
Disclosure: NBCUniversal will be the parent company of CNBC.