NBCUniversal and YouTube ink deal to embed Peacock in the video platform for premium subscribers

All of the streaming service's content — including NBC Sports' portfolio of the NFL and NBA, Universal films like the Minions franchise, and original Peacock and Bravo content like the Real Housewives franchise and "Love Island USA" — will be included in YouTube Premium subscriptions in the U.S. starting early next year.

Google's YouTube Premium is the subscription version of the streaming platform that offers videos without ads and the ability to download most videos, depending on the subscription tier. The service offers a variety of plans beginning at $8.99 per month. Peacock Premium currently costs $10.99 per month.

"The first principle for us was, does this accelerate Peacock's long-term growth? And the answer to that is yes," said Matt Strauss, chairman of NBCUniversal media group, in an interview. "Peacock will now be one of the largest domestic streamers. It's going to significantly expand our reach."

NBCUniversal's partnership with YouTube was formed after Comcast co-CEO Brian Roberts reached out to YouTube CEO Neal Mohan about nine months ago, according to a person familiar with the matter. Following a meeting between the executive teams that took place at Google offices, the two companies began to brainstorm partnerships such as this, the person added.

The partnership comes at a fast-moving moment in the industry. Traditional media companies like NBCUniversal, Warner Bros. Discovery and Disney have been chasing business initiatives to boost revenue and profitability while tech platforms like YouTube and TikTok grab increasing share of viewership time.

Media companies have also been shapeshifting as the business model changes due to consumers' departure from pay-TV bundles in favor of streaming. Paramount Skydance has agreed to acquire WBD; Fox Corp. reached a deal to acquire Roku; and Comcast is preparing to spin off NBCUniversal in the next year.

While streaming services have been announcing a growing slate of bundles to grab more subscribers, this partnership goes a step further and will see Peacock's content live inside YouTube — or be ingested into the platform so viewers don't have to leave YouTube to access the content.

Peacock has already signed deals with other streaming and tech platforms including Apple and Amazon.

During an earnings call with investors last week, Comcast co-CEO Mike Cavanagh said while other media companies have taken a so-called "walled garden" path with their content, NBCUniversal will continue to "look for opportunities to partner, bundle and exhibit other people's [intellectual property]" across its theme parks and media platforms.

While NBCUniversal's announced spinout from Comcast has raised industry hopes for more mergers and acquisitions, Cavanagh and others have poured cold water on the notion, focusing on potential partnerships and bundles instead.

YouTube has long been considered a dominant force in streaming, as it claims a large share of viewership time as showcased in Nielsen's monthly "The Gauge" report.

So-called creator-made videos — a category that amasses millions of viewers on YouTube — are becoming more attractive to media companies like NBCUniversal as they chase reliable and dedicated audiences. The category even hit the stage at this year's annual Upfront advertising presentations.