The streaming wars have hit a fever pitch lately.
With the exception of Sony (SNEJF) , now every media company and film studio has their own signature streaming service, from Comcast’s (CCZ) Peacock to Paramount Global's Paramount+ (PARA) to the newly formed Warner Bros. Discovery’s (WBD) HBO Max.
The competition for subscribers has gotten particularly heated of late, especially after Netflix (NFLX) experienced its first significant loss of subscribers this year, while Warner’s new CEO has taken some cost-cutting measures that fans haven’t liked, including shelving the film “Batgirl,” in order to save on taxes.
The problem for streaming services is that it can be difficult to get customers to stay with them. As more and more streaming platforms hit the market, TV fans will increasingly sign up for a month, watch whatever buzzed-about program they want to catch-up on, and then cancel the subscription until, say, the next season of “Stranger Things” arrives.
This intense competition for new customers is something the $400 billion mobile carrier industry can relate to. Following T-Mobile’s merger with Sprint in 2020, the mobile phone industry is now dominated by a handful of companies, chief among them T-Mobile (DTEGY) , Verizon (VZ) and AT&T (T).
And now T-Mobile has partnered with a major streaming service, in an effort to keep its customer base loyal and happy.
Which Streaming Company Is T-Mobile Partnering With?
Apple+ isn’t the biggest streaming service, in terms of raw numbers. It hasn’t revealed its subscriber numbers, but it’s generally believed the company has far fewer customers than, say, Netflix’s 220.67 million global paid subscribers (as of the second quarter of the year) nor Disney+’s 152.1 million overall streaming subscribers (as of the third quarter of the year).
But Apple+ has taken an approach nearly no other streaming service has. Since Apple is primarily a technology company and not a media company, its streaming service doesn’t come with a built in library of classic films and television shows, which was the natural advantage that Comcast and Warner Bros had. Apple hasn’t seemed interested in spending money to license old content either, the way Netflix did when it first started building the service.
Instead, Apple+ only makes a few things a year, but shoots to make everything a buzz-generating event that breaks through to the larger culture. While this hasn’t been the case for every single show it makes, both the comedy “Ted Lasso” and the sci-fi thriller “Severance,” slowly turned into social media-dominating hits, and the service’s original film “Coda” beat Netflix to the punch by becoming the first film from a streaming service to win the Oscar for Best Picture.
Apple+ doesn’t seem to be aiming towards being the biggest streaming service in the world, and instead is making the arguably wiser choice of being a well-respected, boutique service. But Apple would still love to get more eyeballs on its shows, and T-Mobile needs to find ways to differentiate itself from its competitors.
So the two companies have announced a new partnership, in which customers on the popular Magenta MAX will get a free subscription to Apple+ for one year, starting in September. Customers can activate their free subscription through their T-Mobile account.
The Magenta Max plan starts at $85 a month, and it includes Unlimited premium smartphone data.
“Magenta MAX customers love streaming. So of course, we’re giving them more of what they love, because that’s just what the Un-carrier does,” said T-Mobile CEO Mike Sievert. “It’s moves like this — giving customers more without asking more from them — that have made T-Mobile the value leader in wireless. Now, with America’s most-awarded 5G network, T-Mobile customers don’t have to choose between the best value and a great network.”
AppleTV+
T-Mobile Has Been Leaning On Entertainment
T-Mobile has been trying to position itself as the mobile carrier of choice for pop culture heads. Depending on your deal, you might also be able to get a free Netflix or Paramount+ subscription as well.
Earlier this summer, T-Mobile announced a new program called Coverage Beyond, which gave customers free high-speed connectivity with streaming devices on several airlines at no additional cost, so you can watch ‘Squid Game” on your phone if you so choose.
