Comcast (CMCSA) - Get Comcast Corporation Class A Common Stock Report is aiming to compete with Netflix (NFLX) - Get Netflix Inc. Report, Disney (DIS) - Get The Walt Disney Company Report and others by offering more choice in its forthcoming streaming service, according to a report.
Subscribers of Peacock will have three different options when the service launches in April 2020: A free, ad-supported version of Peacock, a $5 per month with limited ads, and an ad-free tier for about $10 per month, according to CNBC.
The report aligns with earlier commentary by the cable giant on what will differentiate the service from market incumbents such as Netflix. Comcast's CFO Michael Cavanagh recently told investors that the company may seek to address an "underserved" market for ad-supported streaming.
In addition to the various tiers, Comcast plans to offer some live video along with Peacock subscriptions. Both of the paid tiers will include the full array of content, while the free, ad-supported version will have a more limited content offering in addition to ads. Comcast cable and broadband subscribers will receive access to Peacock's library with limited ads for free, according to CNBC.
Comcast plans to disclose more information about Peacock, including pricing other details, at an investor day on Jan. 16.
Peacock is set to join an increasingly crowded market for streaming services, which includes Netflix, Disney+, Apple TV+, Hulu and others. AT&T's HBO Max is also set to launch in May 2020. If reports are accurate, Peacock's $10 per month ad-free tier places it roughly in the middle of comparable streaming services. Apple TV+ costs $5 per month, Disney+ costs $7 per month, and Netflix's standard tier costs $13 per month. HBO Max is set to debut at $15 per month.
Comcast has not yet outlined specific subscriber targets for Peacock, but expects the service to break even by year five of its existence.
Shares of Comcast closed 1.03% higher on Friday to $44.09.
Comcast and Disney are holdings in Jim Cramer's Action Alerts PLUS member club.