Universal Pictures Forges New Streaming Deal for Theatrical Releases Leaving HBO Out
Universal Pictures is keeping their library close to home.
In a deal announced Tuesday, movies Universal Pictures will be available on its sister streaming service Peacock after their theatrical and home video releases. This ends a longtime pact with HBO, allowing the company to compete with media industry rivals in online video.
Universal’s multi-year deal is unusual as it will distribute films to Peacock “no later than” four months after they’re released in theaters, starting in 2022. Typically there is a six- to nine-month gap between a movie’s debut in multiplexes and when it hits pay TV networks.
Because Universal and Peacock share the same corporate parent, the licensing deal isn’t terribly unexpected. What makes the announcement notable is Universal’s catalog: the studio has some of the most popular blockbuster franchises in film, like Fast & the Furious and Jurassic World movies.
In a deal first inked in 2005, Universal has sent their movies to HBO first once they left theaters, but in a bid to increase their company’s profile among streaming services, Universal’s movies (which also covers Focus Features, Illumination, and DreamWorks Animation) will now start their streaming life on Peacock.
Movies will play for four months exclusively on the service before becoming available on other services. They will eventually find a home on Peacock again. Films will still be available for purchase or rental outside of streaming, as usual.
These kinds of deals happen because streaming platforms need exclusive content in this increasingly fractured media market. The explosion of new streaming services has led to a higher premium on movies and TV shows that can convert audiences into paid subscribers and it’s all the better if the content comes from under their own corporate umbrella. Peacock offers the still-popular NBC sitcom The Office that formerly was available on Netflix.
Peacock has not had a large movie library so far, but that is likely to change. The studio released DreamWorks Animation’s The Boss Baby: Family Business simultaneously on Peacock and in theaters. The company did not say how many people watched the animated sequel on Peacock, but apparently not enough to seriously dent the opening the movie brought in an estimated $20 million over the July 4th weekend.
The Universal deal will put more films on Peacock’s shelves by bringing potential blockbusters such as Jurassic World: Dominion, a new Jordan Peele film, DreamWorks Animation’s Puss in Boots: The Last Wish and Illumination Entertainment’s Minions: The Rise of Gru to the service. Universal will also produce an undisclosed number of original movies for Peacock.
Peter Levinsohn, chief distribution officer of Universal Filmed Entertainment Group, said in a statement that the deal “allows filmmakers and artists to reach the broadest possible audience, celebrates and strengthens the theatrical experience, and, above all, empowers fans to experience the films they love on their own terms.”