T-Mobile offers free Apple TV+
T-Mobile last week joined forces with Apple to offer customers (on select plans) free access to Apple TV+ streaming services. New and existing customers on the Magenta and Magenta Max, Magenta 55+, Magenta Military, Magenta First Responders plans, as well as small T-Mobile for Business customers are all eligible for the offer. T-Mobile’s Apple TV+ promotional offer lasts for 12 months and customers are then charged $4.99/month to continue their subscription. Notably, customers on the Magenta and Magenta Max plans continue to enjoy free subscription to Netflix as well.
The NPD Take:
- The addition of Apple TV+ on top of the ongoing free Netflix offer further solidifies T-Mobile’s lead in value-add incentives in the market. The wholesale financial math behind the offer should be lucrative for T-Mobile considering Apple already offers three-months of free Apple TV+ service new iPhone, iPad, or Apple Watch buyers.
- T-Mobile (just like any other postpaid carrier) is poised for a massive iPhone device upgrade period with the upcoming release of the new iPhone, and the new promotion coupled with the Netflix offer should help the carrier attract rivals’ iPhone customers looking for a device upgrade.
Cricket adds HBO Max for top paying subs
AT&T’s prepaid arm recently began offering its top-tier plan customers free access to the HBO Max streaming service. Customers on the $60/month unlimited 5G plan (which comes with 15 GB of mobile hotspot data) can now get free access to the HBO Max service, and unlike in the case with limited time offers like T-Mobile’s 12-month access to the Apple TV+ service, they can keep enjoying their subscription as long as they remain on the plan. Cricket’s top-tier $60/plan offers significant multi-line discounts, with the monthly fee per line dropping to as low as $33/month for four or mor lines.
The NPD Take:
- Lack of free access to content is one of the top three dissatisfaction points (in addition to slow data network and high device prices/lack of financing) among prepaid customers. AT&T’s decision to add HBO Max to Crickets’ perk list of top-tier plan helps the prepaid brand match rival Metro by T-Mobile’s free Amazon Prime offer.
- The aggressive multi-line pricing (as low as $33/month per line) coupled with free HBO Max service access further widens the price gap between Cricket and parent AT&T’s postpaid plans. While the ultimate goal of the promotion is to upgrade existing users to the top-tier plan and attract rivals’ customers, high-ARPU AT&T postpaid customers who are happy with their network coverage may also be switching over to Cricket and hurt the bottom-line.