T-Mobile Offers Free Netflix
T-Mobile customers are in for a treat, as the wireless network operator announced its plans to offer Netflix to subscribers for free.
The free Netflix offer is open for subscribers of the company’s “T-mobile One” family plans with one or two lines, amounting to around $40 per line in a four-people family. A standard Netflix membership normally costs $9.99 in the US and allows a simultaneous video streaming on up to two devices. However, in T-Mobile's unlimited plan, customers can only access DVD-quality videos when watching on their phones. They will have to pay extra costs if they want to watch ultra-HD quality videos. The deal is up for existing and new T-Mobile customers.
Customers can activate their free Netflix by calling T-Mobile, or by visiting their website or store. The so-called “Netflix on Us” will be up for customers starting September 12.
“If you already have a Netflix subscription, T-Mobile will cover the cost of a standard subscription for you—meaning you’ll save nearly $120 every year,“ T-Mobile said.
The new offer is T-Mobile’s latest effort to attract and keep more customers in the United States, positioning the move as one of its “un-carrier” moves that will give it edge over rivals, which have been struggling to maintain network speed as customers use more data on mobile devices. A representative even said that their network “was built for the video era,” exclaiming their confidence that the Netflix on Us offer will not disrupt its network’s speed.
In their strategy articulated in a press release, T-Mobile bragged about OpenSignal’s recent report, which said that the wireless operator’s network speed has actually increased based on a 5 billion real customer tests. It also claimed that T-Mobile ranked 1st “in every category,” including speed, latency, and LTE availability.
According to T-Mobile, the latest move beats the much-loathed bundle offers by its larger competitors, AT&T, and Verizon.
“T-mobile is in an enviable position for the future communications landscape by building the bundle from scratch, without having to sustain legacy businesses that are in structural decline,” said Walter Piecyk, a BTIG analyst. “Netflix is in a similarly enviable position, which makes them obvious and high profile partners.”
AT&T plans to buy Time Warner Inc for $85.4 billion, attempting to transform itself into a media giant. AT&T has already granted its customers some access to HBO, which is owned by Time Warner Inc, in its Unlimited Plus wireless plan. According to them, this move has made it easier to retain subscribers. Verizon and other rival companies have also started offering subscribers more bundles and offers which are more focused on video subscription services.
Piecyk stated that the communication landscape is changing, and affirmed that “T-Mobile is not sitting still waiting for a merger that may or may not materialize.”
“While on the surface this might seem to be just a promotion, it should highlight to investors how T-Mobile can layer on additional service into a bundle that customers actually want,” he added.
Mike Sievert, T-Mobile’s chief operating officer, said that the team-up between Netflix and T-Mobile was a “big investment.”
“Netflix is not providing us with a big discount,” he said, adding that the deal was a part of the company’s strategy, which focuses more on benefits that subscribers seek.
Legere reportedly backed Sievert’s statement, and said, “This is not something Netflix is giving us for free. We’re taking care of your Netflix bill for you,” indicating it would be paying Netflix for the service.
If you want to learn new things and learn strategies about the market, BWorldpedia is the site you should visit! We provide profound and useful insights about the market and across a plethora of topics related to it.