Report: NBCUniversal Considering Pulling Hulu Content

Comcast Corp.’s NBCUniversal is considering removing much of its content from Hulu and making it exclusive to its Peacock platform, according to The Wall Street Journal citing people familiar with the matter, as the media giant determines how to best play its hand in the streaming wars.

NBCUniversal, which owns one-third of Hulu, with Walt Disney Co. controlling the rest, has to make a decision soon. Under the terms of an agreement with Disney, NBCUniversal has a one-time window to exit from the content-licensing agreement between the two early next year. If it doesn’t exercise the option, the content would remain there until at least 2024.

Disney and NBCU, which have been partners in Hulu for more than a decade, are now competing head-to-head with their own streaming platforms: Disney+, which has been off to a fast start, and Peacock, which has been slow to establish its place. The decision comes as Disney and NBCU parent Comcast are also embroiled in a dispute over Hulu’s valuation.

If NBCUniversal decides to pull its content, it would disappear from Hulu by the fall of 2022, according to some of the people familiar with the matter.

Shows produced by NBC that could depart include hits such as “The Voice,” “Chicago PD” and “Saturday Night Live.” Episodes of all three appear on Hulu typically just one day after they air on NBC and are strong performers for the platform, according to people close to the streaming service.

Complicating matters for NBCUniversal is that while removing its content from Hulu might boost Peacock, it could damage NBCUniversal’s bottom line because it is a co-owner of Hulu and shares in its success. A move that harms Hulu also could lower the value of NBCUniversal’s holdings.

NBCUniversal content counts for only a small percentage of Hulu’s total viewership, but roughly 80% of NBC’s digital audience is from Hulu, one of the people familiar with the matter said.

The choice for NBCUniversal isn’t all or nothing. The company could negotiate a new content-sharing deal with Disney, people familiar with the matter said. There have been discussions inside NBCUniversal about lengthening the Hulu window from one day after a show airs on NBC to as much as two weeks, according to one person with knowledge of the talks. Peacock executives have pushed for an even longer window of 28 days, the person said.