New VIP+ Analysis: Hookups between telecom and streaming are gifts that keep on giving, and you’re not done seeing new ones.
The trend of telcos bundling video apps with their wireless plans began with T-Mobile’s “Netflix on Us” promotion to some of its unlimited-plan customers in late 2017. In November 2018, Verizon began offering 12 months of Disney+ free to some customers; the telecom giant announced an expansion of that partnership in August 2020. Customers of Verizon’s two most expensive unlimited plans would be able to continue getting Disney+ for free, and the promotion would also include Hulu and ESPN+.
As a result of “Netflix on Us,” T-Mobile’s postpaid phone customer additions jumped from 595,000 in Q3 to 891,000 in Q4 in 2017. The company said the strong growth was “driven by the continued strong customer response to our Un-carrier initiatives and promotional activities,” according to T-Mobile’s earnings release. “Customers are loving Un-carrier benefits such as Netflix on Us.”
Comcast didn’t give its wireless users Peacock Premium free, which is why it’s not included in the chart above, but it did make the offer to some high-speed Internet users. Guess what happened in the quarter following the promotion. Comcast added a record 633,000 high-speed Internet customers and 556,000 total net new customer relationships.
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