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By Shalini Ramachandran 

Comcast Corp.'s NBCUniversal said Thursday it will launch a comedy-focused subscription video service for $3.99 a month, adding to the dizzying array of new streaming offerings in the market.

The new on-demand streaming service, which will be called Seeso, will be available widely in January and will feature ad-free content from television shows like "The Tonight Show" starring Jimmy Fallon as well as Web original series.

It was developed in a 10-month sprint led by NBCUniversal Executive Vice President Evan Shapiro. At an event in New York, Mr. Shapiro emphasized that the service is meant to serve a "big niche" that could potentially appeal to "millions and millions" of people.

Beyond Mr. Fallon's "Tonight Show," Seeso will include programming from comedian Seth Meyers's late-night show and all of the "Saturday Night Live" library, including full episodes the day after they air on TV. It will also have the entire series of shows like "30 Rock," "The Office" and "Parks and Recreation."

Seeso will include three to five films a month plus a library of all the Monty Python movies and live-streamed comedy performances once a month, the company said.

In addition, NBCUniversal will offer original series through Seeso. Mr. Shapiro is scouring both the traditional television world and the Web for the talent that will star in and produce originals. New series include "The UCB Show," a weekly variety showcase co-hosted and co-executive produced by Amy Poehler, and "The Cyanide and Happiness Show," an animated series that found a following on YouTube.

In March, The Wall Street Journal reported Comcast was developing the comedy streaming service.

About 10% to 15% of content on Seeso will be available to nonsubscribers, but consumers will have to pay the monthly fee for enhanced access, including all the episodes of an original series. None of NBCUniversal's comedy content available on YouTube, such as clips from Mr. Fallon's late-night show, will be taken off YouTube.

One challenge for NBCUniversal will be competing for a share of consumers' wallets against many other streaming media providers. Netflix Inc., which has some 43 million U.S. customers, recently raised the price for its two-stream plan to $9.99 a month. Hulu costs $7.99. Dish Network Corp.'s Sling TV offers a package of TV channels for $20 a month. CBS Corp.'s "All Access" service is $5.99 a month. Time Warner Inc.'s HBO Now is $14.99. For users who are mixing and matching those offerings, the costs can quickly add up.

NBCUniversal owns the NBC broadcast network as well as cable channels such as USA, E!, Bravo and Syfy. Like other media companies, it is experimenting with new business models as traditional TV comes under pressure from cord-cutting, ratings declines and an uncertain advertising market.

In particular, reaching younger viewers has become a priority for media outfits as data show that they are disproportionately moving away from traditional TV viewing. The goal of services such as Seeso is to lure some of those consumers without accelerating the decline of traditional pay TV. NBCUniversal also recently invested in new-media players BuzzFeed and Vox.

Mr. Shapiro said NBCUniversal didn't want to create another TV channel, given the challenges of the pay-TV market. The company views Seeso as complementary to its cable TV business, he said.

Mr. Shapiro said the company decided a comedy-specific offering made more sense than creating a more wide-ranging streaming entertainment service. "Being all things to all people is both really hard and really expensive," Mr. Shapiro said.

Write to Shalini Ramachandran at shalini.ramachandran@wsj.com

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(END) Dow Jones Newswires

October 15, 2015 19:18 ET (23:18 GMT)

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