Industry experts think NBCU may have the winning formula when it comes to its free streaming service

Industry experts think NBCUniversal's planned streaming service could succeed, given the global footprint of Comcast and Sky.The service's ad-supported model might be its best shot at getting rivals to license content to its platform and create a more valuable service.But it will face heavy competition from similar services coming from AT&T and Disney, not to mention other over-the-top options that already have millions of subscribers.On Comcast's fourth-quarter earnings call, NBCUniversal CEO Steve Burke discussed the company's direct-to-consumer product, which is set to launch in the first half of 2020, and some industry experts think it may have the winning formula.NBCU could be a leader in the industry because it's bigger than everyone else and has parent Comcast's distribution to drive scale as well as Sky, Dave Morgan, CEO and founder of Simulmedia, told Business Insider. Between Comcast cable and Sky, there are more than 50 million customers, Burke said on the earnings call.The not-yet-branded platform will provide free ad-supported streaming for Comcast and Sky pay-TV subscribers. Comcast plans to partner with other multichannel video programming distributors to offer their free streaming option to any customer with a pay-TV subscription, regardless of the service provider.For people without a pay-TV subscription, Comcast will charge a fee similar to existing platforms like Hulu, which costs about $6 to $8-a-month for the cheapest option.NBCU will face a crowded streaming marketNBCU will enter an already crowded market for streaming services.AT&T's WarnerMedia is set to launch a streaming service with three tiers before the end of 2019. The service will have one tier that includes licensed content from outside creators, just as Comcast plans to offer for its non-tiered service. Disney+ will launch in late 2019 and include Disney's vast content library, plus new, original series, like some already announced shows in the Marvel universe.But NBCU's planned service stands out for its free approach."Everyone in the market has been so focused on creating subscription-based streaming services, where content exclusivity is so critical," Morgan said. "NBCU's move with a free, ad-supported service will likely be quite attractive to other content providers since it's very consistent with how they all do business with each other in the core TV business today."The process lends itself well to licensing from outside content creators, even those launching rival streaming services like WarnerMedia, observers said."Only Disney is likely to pursue a go-it-alone content strategy in the US," Alex DeGroote, an independent analyst, told Business Insider.NBCU will not only compete with AT&T and Disney for subscribers, but also with the other streaming services that already have millions of customers."There really is going to be a hard line that most consumers are going to have to draw as to which bundles they're going to subscribe to," Tim Hanlon, founder and CEO of The Vertere Group, told Business Insider.Hanlon said it remains to be seen if WarnerMedia or NBCU can match the value that Disney, with its multigenerational brands, provides to consumers."I think Disney+ has a very good chance of being one of those few remaining possibilities to add to most homes, where the others are much more discretionary or niche," he said.NBCU's streaming service sounds like HuluNBCU's planned offering sounds similar to Hulu, in which it owns a 30% stake. Analysts and media experts think that means Hulu will sell its stake soon.It'll be hard for Comcast to justify allocating tens or hundreds of millions in capital to cover Hulu's losses while building its own streaming competitor, said Todd Klein, a partner at the venture-capital firm Revolution.Comcast may wait until 2020 to sell, hoping Hulu grows in value, DeGroote said.