T-MobileT-Mobile said today that it will include a Netflix subscription in its unlimited T-Mobile ONE family plan service at no extra charge beginning September 12. “The world is about to find out what happens when you bring two disruptors together,” said T-Mobile CEO John Legere in a webcast announcing the T-Mobile Netflix offer.

According to Legere, competitive carriers are unlikely to match the T-Mobile Netflix offer because their networks would not be able to handle the increase in traffic.

T-Mobile “didn’t get a big discount” from Netflix to support the new offering, Legere said. To qualify for the Netflix offer, customers must be on a T-Mobile ONE family plan with at least two lines, Legere said. According to a T-Mobile press release, T-Mobile customers on other plans can convert to a T-Mobile ONE plan in order to qualify for the T-Mobile Netflix offer.

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T-Mobile customers that already get Netflix can use a T-Mobile app to link their existing Netflix account with their T-Mobile account so that T-Mobile will cover the cost of the Netflix service, Legere explained.

T-Mobile Netflix Offer
Wireless carriers have reached a “critical tipping point,” with video now comprising more than 50% of total mobile traffic, Legere said. AT&T has responded by buying DirecTV and Verizon has responded by purchasing AOL and Yahoo, he said. But he argued that T-Mobile’s strategy is smarter because Netflix is by far the most popular over-the-top subscription video offering.

Netflix is so popular, however, that Legere doesn’t believe some other carriers are in a position to match the T-Mobile Netflix offer. The reason is that some carriers’ networks are already struggling to support recently launched unlimited offerings.

It was just about a year ago that T-Mobile launched its T-Mobile ONE Unlimited plan – an offering that ultimately drove the other three major U.S. wireless carriers – AT&TSprint  and Verizon  — to also launch unlimited service. Those unlimited offerings have strained some carriers’ networks, however – a reality that has helped T-Mobile performance scores rise in comparison with its competitors.

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One thought on “Legere Says Competitors Can’t Match T-Mobile Netflix Offer

  1. I'm not certain this is a great deal because T-Mobile knows that an account with multiple lines (family plan) generally costs 1/2 or 1/3 in overhead to maintain versus an account with a single line.

    But as a tip, Sprint renewed their "Sprint Free Unlimited" promotion; you can sign up for a year's service for free if you bring your own phone. Do a Google search for it, and just know that you must signup online to get a year of service free. It's free because Sprint isn't paying a salesperson's commission. If you go into a store, they'll deny the plan even exists.

    Also, we have Comcast, and Comcast launched a wireless service called XFinity Mobile. It's a great rateplan- minutes and calls are free, and I pay $45 for unlimited data on Verizon; but it has to be bundled with Cable Internet. In my area $59.99 provides 250MB speed.

    So there are deals out there, but competitors don't want to compete at T-Mobile's rateplan or pricing strategy. It's all-around a great deal.

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