T-Mobile adds free Netflix to take on rivals (TMUS, NFLX)

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T-Mobile is offering free Netflix subscriptions for T-Mobile One customers with two or more voice lines. The wireless carrier is positioning the promotion, set to launch September 12, as a counter to offerings by Verizon and AT&T, which leverage their own media holdings to give customers access to free content.

Verizon’s go90 video streaming app is a free service for its subscribers, with the data used to view content within the app not counting toward the customer’s monthly data allotment.
AT&T’s DirecTV Now app gives users free access to a range of video content, including HBO.

The offering taps into the growing demand for mobile video. In 2016, mobile video accounted for more than 50% of total mobile data traffic, and that’s set to reach 75% of total mobile data traffic by 2021, according to Ericsson.

But T-Mobile could also be using the offering to promote the strength of its network. Both Verizon’s and AT&T’s networks slowed, according to Ookla, likely in part a result of the introduction of their unlimited plans. Meanwhile, T-Mobile’s network speeds have been unaffected.

The ability to offer high-speed internet alongside free mobile video streaming is likely to appeal to US consumers, and could help the carrier’s growth in the highly competitive US market. High-speed networks are a “must-have” for 84% of US consumers when choosing a wireless provider, according to BI Intelligence’s exclusive Digital Telecom Consumer Survey.

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