NBCUniversal May Pull Movies From Netflix, HBO Max

Comcast is considering removing NBCUniversal films from streaming platforms like Netflix and keeping upcoming releases for its own Peacock serviceaccording to a new Bloomberg report. The report arrives at a time when competitors like WarnerMedia and Disney are using their streaming services to offer subscribers exclusive access to new, highly anticipated films.

For subscribers like you and me, this means that movies like F9 could stream exclusively on Peacock instead of heading to HBO Max. Currently, Universal has an output deal with HBO Max that gives the streamer “rights to show new Universal Pictures movies about nine months after they leave theaters,” according to Bloomberg. Illumination (the studio behind Despicable Me and Minions) reportedly has a similar deal with Netflix. Both deals are set to expire at the end of 2021.

Losing access to films like The Secret Life of Pets could also impact Netflix’s business, but executives have publicly stated multiple times they’ve prepared for competitors to pull their films as competition within the streaming landscape heats up. WarnerMedia would ideally like to keep the Fast and Furious franchise on HBO Max in some capacity, too. For NBCUniversal, the bigger question is whether or not executives think having those exclusive films on its Peacock streaming service will lead to enough customers signing up that losing out on those licensing deals is worth the risk.

It’s a bet that several conglomerates in the entertainment industry are currently trying to figure out. ViacomCBS, which owns Paramount and Paramount+, specifically set a new deal with premium cable network Epix that allows for more control over where the studio’s films land after leaving theaters. ViacomCBS can take movies like A Quiet Place II and Mission Impossible 7 to Paramount Plus before they’re available on Epix as part of the new deal. Much like Comcast and NBCUniversal executives’ reported internal thinking, the idea is that having big movies available exclusively and quickly on Paramount+ will encourage more people to sign up.

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Peacock had just over 33 million sign ups as of Comcast’s fourth quarter earnings report in January. There are, however, more questions than answers surrounding that number. Comcast and NBCUniversal executives didn’t specify how many users are paying for the premium $10 a month package, or are streaming Peacock for free as part of their cable and internet bundles, for example. If Peacock is scaling at an impressive rate (something we can’t know without concrete numbers), then using a similar strategy to ViacomCBS could help grow Peacock’s customer base exponentially. At the same time, if Peacock isn’t growing as fast as company executives wanted and if a new Minions or Jurassic World movie fails to bring in as many customers as NBCUniversal executives hoped, the better move is to license.

All of these considerations are happening under the belief that having big titles will lead to more customers, but acquiring subscribers is one thing — retaining them is another. Take WarnerMedia. When the company decided to shift its 2021 theatrical slate to a hybrid model (for example, customers can either watch Godzilla vs Kong in theaters or on HBO Max in the United States), it was done so with the assumption that having a big new film every month will lead to more signups.

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The first test was Wonder Woman 1984. WarnerMedia didn’t give any specific numbers, but between the third and fourth quarter of 2020, HBO Max doubled the number of activations (customers activating their HBO Max accounts) and tripled the number of retail subscribers (customers who sought out and paid for HBO Max without it being bundled into anything). While the hybrid model is immediately worse for a film’s overall revenue, WarnerMedia’s bet is on the longterm growth of HBO Max. If Wonder Woman 1984 gets millions of subscribers in the door, and HBO, Adult Swim, Studio Ghibli, or Friends is what keeps them subscribed month after month, the bet is more likely to pay off.

Streaming is centered on recurring revenue, not just one big payoff that comes with a massive box office haul or a new licensing deal similar to what NBCUniversal and Comcast have with Netflix and HBO. What this means for us, customers who just want to watch movies and TV shows the easiest way possible, is that watching new movies may require subscribing to even more streaming services than ever before. There’s a chance that NBCUniversal and Comcast decide it makes better sense to license the studios films rather than try and pour everything into Peacock. Bloomberg’s reporting suggests executives are open to renewing deals, and NBCUniversal has notably not dedicated the the same budget for Peacock content that other competitors have to their own streaming services.

The other side is also true, though. If Peacock wants to compete against the Netflixes and Disney+s of the world, NBCUniversal and Comcast will likely need to up its exclusive offerings.

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Julia Alexander is IGN’s top streaming editor. Have a story tip? DM her on Twitter @loudmouthjulia or request her Signal number by emailing [email protected].