T-Mobile will be offering free Netflix as part of its strategy to generate more revenue by supplying entertainment content to its wireless customers.
The consumption of Netflix by its wireless users across the nation will assist T-Mobile to generate more data consumers on its nationwide LTE network. The existing high speed LTE customers will also consume more data for enjoying the free Netflix.
The development will assist T-Mobile to take on established telecom operators such as Verizon and AT&T in the US wireless market. Both Verizon and AT&T have strong entertainment focus through their acquisition of media / content companies.
The strategy of T-Mobile is to partner with media / content companies for offering the right content and not acquire them by spending huge funds.
T-Mobile ONE family plans will now come with Netflix — at no extra charge. The price of T-Mobile ONE plan with Netflix is $40 plus taxes per line for a family of four.
“The future of mobile entertainment is not about bolting a satellite dish to the side of your house or resuscitating faded 90s dotcoms. The future is mobile, over-the-top and unlimited,” said John Legere, president and CEO of T-Mobile.
Network pressure
T-Mobile is gearing up to manage the additional pressure from the Netflix content being viewed by its wireless subscribers. Incidentally, T-Mobile is not stepping up its Capex related investment in the network in a big way.
This year, Americans have spent over 50 percent of screen time on smartphones and digital devices versus traditional TV. Mobile viewing is expected to more than double by 2020. This will be aided by LTE network investment done by all four telecom operators: AT&T, Verizon, T-Mobile and Sprint to enhance their ARPU.
AT&T and Verizon customers have experienced drop in network speeds since the carriers launched unlimited earlier this year. This was due to the inability of both AT&T and Verizon to keep up with increased data and video usage. Verizon recently reacted by capping all video speeds. Verizon also introduced new wireless data packages.
T-Mobile is trying to rely on OpenSignal report that said T-Mobile’s telecom network is No. 1 in every category — speed, latency and LTE availability. Consumers need to know that both speed and latency will vary depending on the data consumption on the network.
After the OpenSignal survey, T-Mobile has rolled out the new 600 MHz airwaves – promising more capacity and coverage.
Netflix On Us
Starting Tuesday, September 12th, qualifying T-Mobile ONE customers can activate their Netflix subscription online, in-store or by calling T-Mobile’s customer care. If you have a Netflix subscription, T-Mobile will cover the cost of a standard subscription for you — offering nearly $120 savings every year.
To qualify, you need are two or more paid voice lines on T-Mobile ONE with taxes and fees included. Even customers with free lines from the Un-carrier’s “line-on-us” deals qualify. Customers on Unlimited 55+ or 2 lines for $100 can get Netflix On Us by switching to the latest T-Mobile ONE plan.
Baburajan K