Roku Shares Move Higher on NBCUniversal Peacock App Launch

Shares of streaming device maker Roku were moving higher this week after NBCUniversal’s Peacock app launched on its platform for the first time.

For several months Comcast, NBCUniversal’s parent company, and Roku had been in discussions to get the service on Roku. The two companies had disagreed over control of user data and sharing of advertising inventory.

Peacock had already launched in July but was missing on Roku and on Amazon Fire TV. Peacock is still unavailable on Amazon Fire TV.

It was this past Friday that Comcast threatened to pull NBC’s TV Everywhere channels from Roku while negotiations continued. The companies then quickly agreed to a deal.

“Two primary benefits to Roku include top-end premium inventory and subsequent pricing leverage on its CTV premium ad bundles, and leverage with other major media networks/carriage agreements including present discussions with AT&T/WarnerMedia for HBO Max premium and ad-supported subscription carriage/revenue share,” commented Rosenblatt Securities analyst Mark Zgutowicz. The firm has a “buy” rating on the stock.

“We are pleased to have reached an agreement with Comcast that will bring Peacock to Roku customers and maintains access to NBCU’s TV Everywhere apps,” a Roku spokesperson said.

“More than 15 million people signed up for Peacock since its national launch in July and we are thrilled millions more will now be able to access and enjoy Peacock along with other NBCUniversal apps on their favorite Roku devices,” an NBCUniversal spokesperson said.

On Monday shares of Roku were flying over 17% and even hit a new 52-week high as Wall Street learned of the launch. On Tuesday the stock climbed higher for more gains and hit another new 52-week high of $195.36.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.