Comcast NBCUniversal and Amazon have reached a set of comprehensive distribution agreements spanning Prime Video, Peacock, Fire TV and Xfinity X1.
One notable feature of the deals will see Peacock’s top subscription tier, the ad-free Premium Plus, being added to Prime Video, allowing customers to subscribe for $16.99 a month or $169.99 a year. Thanks to a renewed deal that was part of the broader partnership, Peacock is also still available on Amazon Fire as a direct-to-consumer offering.
Existing deals for sale and rental film titles from Universal Pictures Home Entertainment on Prime Video, as well as the Prime Video app’s availability on Xfinity X1 devices have also been renewed.
Amazon used to use the “Channels” handle for its subscription business, but has shifted away from that in recent months, though the strategy of serving as a hub for all things streaming is very much in place.
The two companies have had a long-term business relationship, but there have been occasional periods of disharmony. In 2020, Peacock launched without Amazon as a distribution partner after the parties failed to agree on terms. Five years later, the companies are more aligned and will soon share the status of media partners with the NBA, meaning many viewers will be spending time in both media ecosystems on a regular basis.
In an interview with Deadline, NBCU Media Group Chairman Matt Strauss said the Amazon agreements are indicative of NBCU’s strategy with Peacock in particular. The service has taken a more conservative approach to bundling, and has ended up with the lowest percentage of bundled subscriptions of any streamer apart from Netflix. Comcast said Peacock finished the second quarter with 41 million subscribers, flat with the prior quarter. Strauss said about 80% of subscribers are on the ad-supported Premium tier.
“You’re going to see us strategically lean into bundling,” he said, but with an emphasis on ensuring that “the economic value is right for the portfolio.”
Bundles, particularly with large-scale tech firms, can provide a quick boost but sometimes those gains are ephemeral. “If you don’t structure these deals the right way, you can check the box about adding subs but if you don’t get the right return and consumers aren’t engaging with it, you haven’t succeeded,” Strauss said.
In a press release, Comcast President Mike Cavanagh said the distribution deals are “a testament to our close collaboration with Amazon.”
Mike Hopkins, Head of Prime Video and Amazon MGM Studios echoed that sentiment. 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 joins Prime Video’s collection of more than 100 subscription options in the U.S. Along with subscription offerings, customers can 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.
Under the agreements, customers of Comcast’s Xfinity TV will continue to get 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 with Comcast’s Xfinity Voice Remote.
Also, Sky, Europe’s leading media and entertainment company owned by Comcast, has a multi-year partnership with Prime Video on Sky devices across its footprint in 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.
