NBC has finally entered the streaming war with its new service, which the company plans on launching in 2020. The service will compete with the bigwigs of the streaming industry like Netflix, Amazon, Disney, and others. Let’s see how it goes for NBC and how much will the company benefit from that new service.
NBC, as we all know, is doing great for the conventional pay-tv industry. NBC has always dazzled us with great concepts and ideas related to consumer entertainment. Now, NBC has decided to launch a free, ad-supported streaming service for the US market that can be accessed by anyone who subscribes to the traditional pay-tv service.
This includes those in competition with the company such as Dish, Cox, AT&T, and Charter. The service is going to be launched in the first quarter of 2020.
Those who don’t subscribe to pay-tv service will get the entire content that includes more than 1,500 hours of NBC TV shows and numerous Universal movies by shelling out $12 per month.
The move of NBC to strike deals with the largest pay-tv providers seem to be a bit accidental because the company has done nothing of that sort in the past. Still, the product is going to remain free for customers of those providers, so NBC is not planning on any challenges as far as inking those agreements is concerned.
NBC is optimistic about the impact of the service on the people, which is why NBC is hoping to increase its customer base by 30-40 million since the service is going to be free for millions of people that already subscribe to pay-tv. The highlighting point is the ‘free’ service that is offered by the company, which will make all the difference.
NBC plans on airing 3-5 minutes of advertisements between an hour of programming, which will get the company $5 from each user every month.
NBC hopes to create a platform, which can set the benchmark for others to follow. The company wants to achieve that by making the service free of cost so that anybody can subscribe to it without giving a second thought.
The point where NBC is looking to capitalize on is ‘ad-supported network’ where the ads will not be as long as other ad-supported networks. Moreover, the length of content will also be longer in the service that NBC Sports Gold Activate plans on launching. So, it is going to be a one-of-a-kind service that people will get to see in a few months’ time.
The service is also going to have live TV such as news and sports aside from the on-demand programming. Users may be able to enjoy the 2020 Summer Olympics on the platform since it is going to be launched near this mega sporting event.
NBCUniversal has thrown its hat into a competitive ring that is going to cost the company a bomb. However, NBC has that cushion to spend a mammoth sum, which is required in this case. It will be interesting to see how people respond to the new service and how many users will it be able to snatch from streaming incumbents like Netflix, Hulu, and HBO.